Boston area businessman and philanthropist Robert Lappin has now taken a second hit in the ongoing fallout from the Madoff Ponzi scheme.
Bankruptcy trustee Irving Picard is suing Lappin and related entities for $1.8 million that they allegedly made investing with Madoff. According to court filings, “The transfers received by the defendants constitute non-existent profits supposedly earned in (Lappin’s) account. But in reality, (this was) other people’s money.”
Lappin, who lost more than $20 million of his personal fortune in the Madoff scam, made news last December by replacing $5.1 million in his employee’s 401(k) plans that were lost through Madoff investments.
The assets of The Robert I. Lappin Charitable Foundation, a major supporter of Jewish causes, were pretty much wiped out from Madoff losses. In the aftermath, the foundation has received support from donors, both corporate, individual and anonymous, and the Jewish Federation of the North Shore, to keep their core Youth to Israel program operating.
According to various media reports, Picard has initiated more than 1000 clawback suits against investors who were net winners relative to Madoff investments.