The Texas A&M Foundation, the fundraising arm of the University, was one of the victims of the Bernie Madoff’s ‘Ponzi’ scheme that robbed investors of $17.5 billion worldwide. Now the Foundation is trying to get their share of the money back.
Officials with the Foundation said that one of their financial managers had invested in a company called Greenwich Sentry LP, which in turn gave money Madoff’s securities firm.
The Foundation learned it lost lost $4.2 million after the FBI arrested Madoff in 2008 and the Ponzi scheme collapsed.
Foundation officials said they did everything they could to recover the money, including firing their investment manager.
Kathy McCoy, the A&M Foundation’s director of marketing said the group’s lawyer is reviewing options for recouping the funds. She says the $4.2 million loss was a small slice of the organization’s overall portfolio. The same year officials learned of the scheme, the Foundation’s investments in publicly traded security were worth more than $741 million. One official with the Foundation says in large endowments, losses of that size are not unusual but it is not normally due to fraud.