It is perplexing that Forms 990-PF filed with the Internal Revenue Service by various Wilpon family private foundations provide no reference to the assignment to Madoff Trustee Irving Picard of their allowed net equity claims and the encumbering of their “Estimated SIPC Recovery – Madoff Theft Loss,” even though such 2011 Forms 990-PF were filed well after Federal District Court approval on May 31, 2012 of the Settlement Agreement dated April 13, 2012 between Picard and the Wilpons.
More than a week after the recent $2.5 billion distribution to victims in the Madoff scandal, Trustee Picard’s Web site reported that there was a reduction of $67.3 million in liabilities of the Wilpons to the Madoff bankruptcy estate in conjunction with the first two distributions.
This Installment points out the potential impact that the current $2.5 billion distribution by Madoff Trustee Irving Picard may have on the diverse and divergent interests among the Wilpons that are parties to the global Settlement Agreement with Picard.
The return of grants by a charity to private foundations related to the the sons of Bernard L. Madoff evidence that some charities may be exercising greater caution in their gift acceptance policies as a result of the dramatic and sometimes devastating consequences that highly respected charities have suffered from involvement in Ponzi schemes.
This Installment discusses some aspects of the potential impact that a large distribution to Madoff victims by Trustee Irving Picard may have on the diverse and divergent interests among the Wilpons that are parties to the global Settlement Agreement with Picard and how the Wilpons could address such an impact.
In a case in the New Jersey Tax Court, the Judge distinguishes the long-standing federal “Ithaca Trust Rule” to allow an estate of a decedent a refund of an estate tax payment from the Division of Taxation for the discovery by the estate after the decedent’s death of the worthlessness of an individual retirement account entrusted to Madoff.
The numerous former defendants, constituting the Wilpon-Katz-Mets individual, business, family trust and charitable interests (the “Wilpons”), in the celebrated but now-settled case brought by Irving H. Picard, the Trustee in the Madoff liquidation, will benefit greatly from the Supreme Court’s refusal to review the net equity calculation formula adopted by Picard.
Having settled their long-running case with Irving Picard, the numerous defendants, constituting the Wilpon-Katz-Mets individual, business, family trust and charitable interests (the “Wilpons”), are cheering Picard on to recover every dollar that he can in his mass appeal to the Second Circuit Court of Appeals to overturn a number of Judge Jed S. Rakoff’s earlier orders and opinions in the Wilpons’ case.
Would the great Yogi Berra, who is famous for saying, “It ain’t over till it’s over,” be likely to agree that, with the May 31, 2012 approval by Federal District Judge Jed S. Rakoff of the settlement agreement between Picard and the Wilpons, it is over? There appear to be a few loose strands still present, within the Wilpons’ case itself and generally for the many unresolved Madoff/Picard matters.
Those who were eagerly anticipating the final dénouement on May 15, 2012, in the epic battle between Madoff Trustee Irving Picard and the numerous defendants, constituting the Wilpon-Katz-Mets individual, business, family trust and charitable interests, will apparently have to wait at least until May 31, 2012. The approval of the final Settlement Agreement by Federal District Judge Jed S. Rakoff, originally scheduled to occur at a hearing on May 15, 2012 at 4 p.m., has been postponed until May 31, 2012 at 4 p.m.
This Installment raises some questions regarding the inclusion of the private charitable foundations, which Madoff Trustee Irving Picard had sued for recovery of “fictitious profits” and principal, as parties to the global Settlement Agreement between Picard and the Wilpons.
This Installment addresses some of the effects on, and implications for, certain charitable private foundations and their respective officers, directors, trustees and foundation managers under the proposed settlement agreement between Madoff Trustee Irving Picard and the numerous defendants, constituting the Wilpon-Katz-Mets individual, business, family trust and charitable interests.
Today, a settlement was reached between Madoff Trustee Irving Picard and the numerous defendants, the Wilpon-Katz-Mets individual, business, family trust and charitable interests (the “Wilpons”), which requires the Wilpons to pay $162 million to Picard but appears to be a very favorable result, perhaps actually an outright victory, in their efforts to keep control of the Mets.
In his latest Opinion and Order of January 17, 2012, Judge Rakoff denied the motion of Irving Picard, who sought an immediate interlocutory appeal to the Second Circuit Court of Appeals of Judge Rakoff’s earlier ruling that greatly limited the amount that Picard could seek to recover from the Wilpon interests. As a result Judge Rakoff’s “fixed and firm” trial date of March 19, 2012 remains unaffected.
This posting will utilize recent publicly-available consolidated financial statements and Forms 990 of Hadassah to review the impact over the last several years of the Madoff scandal on the membership and dues and legal fees of Hadassah.
It was recently reported that the Hadassah hospital in Israel, which is supported and owned by the non-profit Hadassah affiliate that actually paid the $45,000,000 in cash settlement to Trustee Irving Picard in the Madoff bankruptcy, has been unable to meet $2.65 million in payments to suppliers.
With the recent passage of the third anniversary of the arrest of Bernard Madoff, it appears appropriate to review where Hadassah currently stands, as reflected in publicly available documents, in light of its settlement payment of $45,000,000 in March 2011 to the Trustee of the Madoff bankruptcy proceedings.
In his Thanksgiving Eve Order, Judge Jed Rakoff granted a modest and uncertain victory to Irving Picard, the Trustee in the Madoff bankruptcy proceeding, for a jury trial on those of the Trustee’s claims that seek to avoid transfers from Madoff to the Wilpon Interests as fraudulent.
New Jersey Tax Court Judge Gail Menyuk has disagreed with the position of the State of New Jersey to find that a Madoff investor can file amended tax returns on a timely basis for refunds under the New Jersey Gross Income Tax applicable to open tax years.
There has been a disappointing lack of transparency evidenced by the Jewish Association for Services for the Aged — a defendant in a clawback action recently filed by the Madoff trustee — in its failure to provide meaningful public disclosures of the magnitude of its investments with Madoff and its loss and exposure to risk, either in media releases or in filings of Forms 990 with the Internal Revenue Service.
Trustee Irving Picard has addressed charities that invested with Bernard Madoff in a perplexing and inconsistent manner, virtually to the point of arbitrariness and unfairness. His new $5.2 million lawsuit against the Jewish Association for Services for the Aged not only reaffirms his erratic behavior in this area, but also suggests that Picard may have other purposes for his actions.
This posting will focus on the position of Madoff Trustee Irving Picard that the recent opinion of Judge Jed S. Rakoff is arbitrary and unfair, especially in view of the inconsistent decisions, perhaps to the point of unfairness, that Picard himself has made relative to certain charities that invested with Madoff.
This posting will focus on an apparent misunderstanding among the Wilpon Interests’ team as to the meaning of one aspect of Judge Rakoff’s opinion and order yesterday relating to the size of their potential exposure to fictitious profits as reported by Adam Rubin for ESPN.com.
On March 10, 2011, The Honorable Burton R. Lifland, Bankruptcy Judge for the Madoff Estate, approved a settlement with Hadassah, whereby Hadassah will pay, within 60 business days, $45,000,000 of its alleged $77,000,000 clawback exposure.