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Charities shouldn't be punished for Madoff's lies

Charities shouldn't be punished for Madoff's lies
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Charities shouldn't be punished for Madoff's lies 1

Fundraising | Vibeka Mair | 30 Jun 2009

Like many clever fraudsters, Bernard Madoff, the investment banker who was jailed for 150 years this week for robbing investors of £40bn, fuelled his lies with the cover of respectability, which included major philanthropy to maintain his position in high society.

Now some angry bloggers are asking whether these charities have a moral or legal obligation to return the millions that he has donated.

Although I sympathise with the thousands of people (mostly pensioners) who have lost their life savings. Charities took his donations in good faith. And no one is calling for the companies who sold Madoff his mansions and yachts to return the money he spent with them.

And lets not forgot along with gaining millions, charities lost millions through Madoff's deception, including Stephen Spielberg's charitable foundation Wunderkind. 

Anonymous
30 Jun 2009

Charities should do a bit of due dilligence on major donors they accept money from if they suspect they are crooked. If they have suspicions and don't investigate and take the money anyway, then they are behaving unethically and should return the money.

But if they took the money in "good faith" as you say, then they should be able to keep it.

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