BOSTON (CBS) — The investigation into the tight web of big money and persistent fraud in the Bernie Madoff scandal continues to unwind and the latest target of that probe is one of the most respected names in Boston philanthropy — Carl J. Shapiro.
Shapiro and his family have agreed to forfeit $625 million to the US government.
The 97-year-old Shapiro, the founder of one of the country’s largest women’s apparel companies and a former chairman of Vanity Fair, was also one of the first investors with Madoff, making his first investment in 1961.
His family foundation has given millions to dozens of organizations including Harvard Medical School, Beth Isreal Deaconess and the new wing at the MFA.
Shapiro will give up millions, traceable to the funds invested by other victims of Madoff’s elaborate Ponzi scheme. In fact, there were no profits but the hard-earned cash of other investors who lost everything.
The agreement was announced at the US Attorney’s office in Manhattan.
Listen to the full report from WBZ News Radio’s Anthony Silva.