Saturday, 2:15 PM
Tufts loses $20 million in Madoff scandal
By Globe Staff
Tufts University has lost $20 million through an investment in a fund tied to financier Bernard Madoff, the Wall Street trader accused of running the biggest Ponzi scheme in history, the college's president said today.
The losses occurred through Tufts' stake in Ascot Partners, which in turn invested the sum with Madoff Securities, President Lawrence S. Bacow wrote in a letter e-mailed to the university community. The $20 million amounts to less than 2 percent of the school's endowment, he said.
scale and scope,'' he said. "I am sorry to report that Tufts is one of a growing number of victims of the crimes allegedly committed by Bernard Madoff.''
Bacow said Tufts had written off the value of the bad investment and will "cooperate with any investigations of this fraud and will work to recoup as much of our investment as possible.''
Earlier this week, Yeshiva University in New York said it had lost about $110 million in investments tied to the Madoff scandal.
The losses attributed to Madoff coincide with tough economic times for colleges and universities, which have announced budget cuts and other steps to weather the financial downturn. Tufts is seeking $36 million in budget cuts for next year.
In his letter, Bacow said the write-off from the Madoff investment will not significantly affect the college's operations.
"We also have an obligation to our students and faculty to manage these resources wisely for their benefit,'' he said. "You have my word that we will look closely at our experience in this case so that we can strengthen our investment process for the future.''