The Ripple Effects of the Madoff Scandal -- and What We Can do to Help
While many people are shocked by the news of Bernard Madoff's apparent Ponzi scheme affecting as much as $50 billion from a range of investors, Steven Barnes is focused on rebuilding his life and navigating a changed world.
Two days before Thanksgiving, Barnes was released from prison in Upstate New York after serving nearly 20 years for a rape and murder he didn't commit. He was freed when DNA testing, secured by the Innocence Project, proved his innocence. Since then, he has spent time with friends and family - particularly his mother, Sylvia, who woke up every day for two decades focused on securing her son's freedom.
The Innocence Project spent nearly $20,000 for the DNA testing that led to Barnes' release. We represented him for several years, spending tens of thousands of dollars in attorney salaries and fees associated with his case. As in all of our work, we were able to fight for Steven Barnes with the support of dedicated individuals and foundations. This week, we learned that one of our important supporters, the venerable JEHT Foundation, is suspending grant-making and closing it doors. Madoff managed the finances of the family who funded JEHT, so the family no longer has money for the foundation to distribute.
The roster of organizations supported by the JEHT Foundation is long and impressive. The Center for Constitutional Rights, Human Rights Watch, Physicians for Human Rights and dozens of other vital organizations are losing a critical source of support.
In a time when many wonder what the public can do to help address the national economic uncertainty, the Madoff scandal brings at least part of the answer: Donate today to organizations that are losing critical support as a result of this scandal. You can click here to donate to the Innocence Project; all donations this month will be matched, dollar for dollar, by other supporters. Click here to find other nonprofit organizations impacted by Madoff, and go to one or more of those organizations' websites to donate today.
For our part, the Innocence Project will continue building on our successes. Obviously, the loss of a foundation that supported us so generously will hurt us, but it's not catastrophic. The JEHT Foundation's great legacy is that it helped the Innocence Project and other organizations become more self-sufficient; over the last four years, the foundation focused on helping us diversify our base of donors so that we draw support from more individuals and other foundations. Now, in the midst of the critical holiday fundraising season, we are optimistic that even more individual donors will step up and help us move forward.
That's what each of us can do -- not just to offset the losses of the Madoff scandal, but to make sure that other innocent people like Steven Barnes do not spend another holiday in prison for crimes they didn't commit.
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Whether or not this is a Ponzi scheme is debatable but MADOFF’S FUND raising magic was not so unique, but is a key to understanding how much of the investment banking system functions, and why there is so much room for graft.
The corruption trench is deep and wide.
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http://pac
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"Madoff managed the finances of the family who funded JEHT." Didn't anyone figure out that this was a risky investment? You know, making 8-10% all of the time, every time? Madoff reminds me of the bandit Clavera who, when asked why he he robbed people, merely replied that "If God didn't want them sheared, why did he make them sheep?" -- in this case the sheep imagined themselves to be wolves.
Maddy, I appreciate the plug for Physicians for Human Rights. I caught your blog post on Google News -- I keep an eye on media mentions of PHR, because I work there. And then when I saw your byline, I did a double take: We were 1Ls together at NYU. Nice to see that we're both still fighting on the side of the angels.
where'd the money go?
The victims were mostly very sophisticated investors. They were suckered in for the last ten years. What chance do the rest of us unwashed masses have is making good returns on our stock market investments?
This is the best list of victims I've seen...man
http://www
Can't they get back some of Madoff's money and make sure it goes to charities first? (He has around $300 million left, I believe.) It sounds like the opposite of Robin Hood -- taking from money that helps fund worthy causes, and using it to bring in more wealthy investors. It just seems like the bankruptcy court or someone can make the charity money a higher priority..
this is insane. i
t's one thing when people actively choose to put their money with someone, then they lose it. but these charities aren't at all to blame, yet have the most to lose.
glad to learn about this and be able to donate at least a little bit.
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