This somewhat of a strange twist that the donors of the funds required that the money be invested with Madoff. The article from the Wall Street Journal states it was a significant loss for gastrointestinal research, but also a small portion of their overall funding. It’s been since December 11th, and it seems more and more victims unfortunately keep surfacing. BD
Mayo Clinic has learned that a free-standing charitable trust established to fund Mayo research, practice and education in the area of digestive diseases was under the management of Bernard L. Madoff Investment Securities. The investment firm was not retained by Mayo Clinic. The trust agreement required that the Madoff firm manage the trust’s assets.
The affected endowment fund has provided annual distributions to Mayo Clinic over time. The fund is only one of many sources of funding for Mayo Clinic GI research, practice and education initiatives. This situation will not affect provision of care to patients in gastroenterology or any other specialty.
Mayo Clinic has never used the Madoff firm as an investment manager for any of its own operating, endowment or pension funds. The firm was retained by the Miles and Shirley Fiterman Endowment Fund for Digestive Diseases to manage the trust’s assets. The trust is governed by five trustees — two appointed by the Fiterman family and three appointed by Mayo Clinic. The trustees receive no compensation or other benefits from the trust and had no discretion over investment of the funds, since use of Madoff Investment Securities was specified as a term of the Trust Agreement. The trustees do not yet know the full extent of the losses of the trust.
NOTE: Please share this information with staff in your area as appropriate. This notice is being sent to Mayo Clinic consulting staff, residents, fellows, and supervisory and administrative staff at all campuses.