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December 08, 2010

Philanthropist Agrees to $625-Million Madoff Payment

The Boston philanthropist Carl Shapiro and his family, who were longtime investors with Bernard Madoff, will hand over $625-million to repay victims of the disgraced financier’s fraud, The Boston Globe writes.

Federal officials were poised to seize the money, which the government contends represents fictitious profits the Shapiros received from Mr. Madoff’s firm over nearly 40 years. The family said it lost more than half a billion dollars to Mr. Madoff’s Ponzi scheme and has curtailed giving as a result.

With the help of his Madoff investments, Mr. Shapiro, 97, parlayed the 1971 sale of a dress business into a fortune exceeding $1-billion, much of which he has given to hospitals, museums, and other organizations through a family foundation.