April Baer, Madoff Investment Fraud Damage Hits Oregon and PREA Efforts, Oregon Public
Broadcasting, December 19, 2008
The arrest of investment maven Bernard Madoff has sent shock waves through the financial
world. April Baer reports that the ripple effect of Madoff's alleged Ponzi scheme
has reached Oregon.
Ponzi schemes are a form of fraud that pays bogus returns to investors with cash
paid in by new investors.
Madoff's victims include some extremely wealthy people, respected hedge funds, and
some prominent Jewish charities and foundations.
One of them, the JEHT Foundation, co-funded the Stop Prisoner Rape project, along
with the state of Oregon.
JEHT is shutting down in January, its grants at a screeching halt.
Jennifer Black with Oregon's Department of Corrections confirmed there will be consequences
for Oregon's Prison Rape Elimination Act, or PREA.
Jennifer Black: "We're going to stay committed to PREA, and we're just going to
continue to do the best job we can with existing resources."
The sole staff member committed to the project still has her job, but now $150,000
in promised funding will not be coming through.
Oregon's Jewish Community Foundation did not invest with Bernard Madoff, and so
it suffered no exposure to the alleged scheme.