Jewish Community Foundation of Los Angeles Forms Special Committee in Wake of Alleged Madoff Fraud

The Jewish Community Foundation of Los Angeles (The Foundation) today announced the appointment of a special committee in the wake of the alleged Bernard Madoff fraud. The Foundation disclosed on Monday that it had entrusted $18 million, less than 5% (five percent) of its total assets, to Madoff’s investment firm.

The committee received a mandate from the Board of Trustees of The Foundation to pursue the recovery of the defrauded assets and to conduct a comprehensive evaluation of The Foundation’s investment processes. Consistent with The Foundation’s pledge of transparency with respect to Madoff-related matters, the special committee will issue interim and final reports of its findings and recommendations.

Members of the special committee include Cathy Siegel Weiss, Chair of The Foundation’s Board of Trustees and Lorin Fife, Chair-elect, as well as several highly regarded professionals serving as trustees of The Foundation. A senior representative of the Jewish Federation of Greater Los Angeles will also serve on the special committee. The Foundation and its board are being advised by the law firm of Barger & Wolen, LLP, which has previously worked with the organization on governance matters.

Marvin Schotland, president and chief executive, said: “Even as we remain shocked and appalled by the alleged fraud perpetrated not only on us but hundreds of other victims, The Foundation is moving swiftly and decisively to undertake the level of self-examination and review that is expected of us as stewards of Jewish Los Angeles’ charitable assets for 54 years. We take our role in the community very seriously.”

Schotland reiterated that the loss sustained by the alleged fraud was confined exclusively to The Foundation’s Common Investment Pool of assets. He emphasized The Foundation’s Donor Advised Funds, held primarily in Treasury and other government instruments, were not impacted.

“Our investment approach that emphasizes diversified asset allocation limited our exposure to a modest percentage of endowed and managed funds. We remain highly stable—a hallmark of this foundation,” Schotland concluded.

ABOUT THE FOUNDATION

Established in 1954, the Jewish Community Foundation is the largest manager of charitable assets and the leader in planned giving solutions for Greater Los Angeles Jewish philanthropists. As of December 31, 2007, The Foundation managed assets of nearly $800 million and ranks among the ten largest Los Angeles foundations (based on assets). In 2007, The Foundation and its 1,200-plus donors distributed $78 million in grants to more than 1,850 organizations with programs that span the range of philanthropic giving. For more information, please visit www.jewishfoundationla.org