An article published yesterday in the NY Times announced that the infamous Bernie Madoff will likely plead guilty to charges that he operated a $50 billion Ponzi scheme at his hearing this coming Thursday (March 12th) in Manhattan. This scandal has impacted thousand of people around the globe, but have you ever stopped to think about how this impacts the New York science community?
In doing some research on this topic, I found an article in the Wall Street Journal that covered just that (well, almost): The impact of the Madoff scandal on health and science. The article states that the Ponzi scheme sent “shock waves throughout the medical and scientific communities — with far-reaching implications for everything from diabetes research to palliative care”.
One Madoff investor, Leonard Feinstein (co-founder Bed Bath & Beyond), donated money to the North Shore-Long Island Jewish Health System in order to aid in the building of a research institute. Though the amount was unspecified, it was a large enough sum that the building would be named in honor of the Feinstein family.
Real estate mogul Mortimer Zuckerman, another Madoff investor, had pledged $100 million to help build a new research center at Memorial Sloan-Kettering. Zuckerman reports that he lost $30 million dollars in the Madoff scandal.
The good new is that neither Mr. Feinstein nor Mr. Zuckerman plan to withdrawal their donations as a result of the Madoff scandal. However, even though short-term donations may not be effected, there will be less money to donate in the future. As Mr. Zuckerman says, he “will have $30 million less to give away.” Foundations like the Feinstein’s have lost millions as well. According to Melissa Berman, president and CEO of Rockefeller Philanthropy Advisors in New York, “Long-term, it’s billions of dollars of funding that won’t get made.”
Mr. Madoff’s plea this coming Thursday is a momentous occasion. Let’s hope he gets a sentence that is adequate to pay for all those he hurt, including investors, scientists, and patients.