Clawbacks and Charities: It Can Happen Here
For those of you wondering if the Trustee in the Madoff bankruptcy case may go after recipient charities and what could subsequently happen, keep your eye on this case as it moves through the Federal courts. Barring a settlement, it may prove a guide.
from The Philadelphia Inquirer:
Malvern Preparatory School is waging a court battle against demands that it return $900,000 donated by Joseph S. Forte, a former trustee and volunteer strength coach at the school who is serving a 15-year prison term for investment fraud.
That makes the Main Line school different from other recipients of Forte’s Ponzi- fueled largesse, including the Archdiocese of Philadelphia. Those recipients reached agreements allowing more time for out-of-court negotiations with the court-appointed receiver gathering money for Forte’s defrauded clients.