Even though the private foundation of Dayle and Michael Katz (the “Michael Foundation”), like the private foundation of Iris and Saul Katz, took ample time until February 1, 2013 to prepare its Form 990-PF, such Form 990-PF suffers from a scarcity of information as to the Michael Foundation’s involvement with Madoff. However, the Michael Foundation’s situation is very different from that of the Saul Foundation.
Even though the private charitable foundation of Saul and Iris Katz took ample time until February 1, 2013 to prepare its 2011 Form 990-PF, such Form 990-PF suffers from a disappointing and manifest scarcity of information as to involvement with Madoff and the Settlement Agreement with Madoff Trustee Picard.
This blog series has been monitoring the quality of disclosures being made by private charitable foundations of the Wilpon and Katz families in their IRS Forms 990-PF as to involvement with Madoff and the Settlement Agreement made with Trustee Irving Picard approved on May 31, 2012. The Forms 990-PF provide not only a window into the internal operations of the foundations but also allow for analysis of the quality of the disclosures made as to a matter that has received wide and continuous publicity.
This posting will address the question of what officer of a charity should sign the 2012 Form 990 to be filed with the Internal Revenue Service (“IRS”) in light of the requirements of the IRS contained in the Form 990 itself and the IRS Instructions for Form 990.
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.
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.
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.
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.
Is the aggressive and somewhat incongruous approach taken by Picard against the Wilpon/Katz Families in seeking not only fictitious profits but also principal part of a larger strategy of Picard for his attacks on JPMorgan Chase, HSBC and other institutions?
The comparison of the Wilpon/Katz private charitable foundations with the Lautenberg private charitable foundation indicate that Irving Picard, the Madoff Trustee, has made peremptory and perplexing decisions not only as to the Madoff investors that he has chosen to pursue but also the extent of recovery that he is seeking.
The tabular comparison of the Wilpon/Katz private charitable foundations with the Lautenberg private charitable foundation can be helpful in analyzing, based primarily on the public information filed by the foundations with the IRS, whether Irving Picard, the Madoff Trustee, is dealing uniformly with these foundations and their respective founders.
The adoption of both a whistleblowing reward system and a formalized methodology for recognizing and developing cooperation may seem to be radical changes for the SEC, but attorneys with experience in white-collar defense are intimately familiar with both models, since they have for years been staples of the Department of Justice.
The 2009 Form 990-PF of the Lautenberg Foundation, when compared to its 2008 Form 990-PF, which was filed with the IRS 15 days earlier, reveals some interesting new financial information.
The Lautenberg Foundation, a private charitable foundation, which was formed by Senator Frank R. Lautenberg and had invested with Bernard Madoff, was past due in filing its 2009 Form 990-PF with the Internal Revenue Service.
The Forms 990-PF filed with the Internal Revenue Service in recent years by the Wilpon and Katz Family Foundations provide helpful information on their distributions from the Madoff scheme.
The Trustee in the Madoff bankruptcy proceeding is treating the Wilpons and Hadassah very differently in seeking recovery of distributions from Madoff.
Hadassah continues its two years of perplexing and conflicting public statements and IRS filings about Madoff in the reporting of its $45 million settlement in the Madoff bankruptcy.
AJCongress appears to make conflicting statements as to its suspension of operations and status in the Madoff bankruptcy proceedings.
Following two years of perplexing and conflicting public statements and IRS filings about Madoff by Hadassah, it is voluntarily paying $45 million to settle a potential clawback claim of $97 million in the Madoff bankruptcy.
This is the forty-first in a series of installments on this blog that are discussing some of the issues arising in the aftermath of the Ponzi scheme perpetrated by Bernard L. Madoff (“Madoff”). Many of the Installments in this series have focused on specific problems and concerns respecting public charities and private foundations that were… Continue Reading