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August 01, 2012

Charity Turns Down Donations From Bernard Madoff's Kin

A charitable fund turned down more than $250,000 in gifts last year from organizations founded by the sons of disgraced financier Bernard Madoff, the New York Post reports.

Tax records show the Fidelity Charitable Gift Fund returned contributions of $176,000 from the Deborah and Andrew Madoff Foundation and $79,000 from the Mark and Stephanie Madoff Foundation in early 2011, two months after the groups made the gifts to help meet their legal obligation to distribute 5 percent of their assets.

Fidelity declined to comment on its decision to return the donations, but experts said the firm may have concluded it was risky to take money linked in any way with the Madoff name.

Andrew and Mark Madoff's foundations were sued in 2010 by Irving Picard, the bankruptcy trustee charged with "clawing back" money to compensate victims of Bernard Madoff's Ponzi scheme. Mr. Picard alleged the fraud provided $2-million in seed money for each of the younger Madoffs' charities.