The Carl and Ruth Shapiro Family Foundation will fulfill its obligations to complete the funding of the University's science center and admissions building projects despite losing $145 million of its funds due to its involvement in the $50 billion Bernard L. Madoff Ponzi scheme, according to Diana Pisciotta, a Foundation spokesperson. The University's endowment, however, should not be directly affected by the Madoff scandal since the University has no investments in any Madoff funds, according to Executive Vice President and Chief Operating Officer Peter French.

Madoff, a former chairman of the NASDAQ composite, was arrested Dec. 13 and accused of running a $50 billion Ponzi scheme, a fraud operation in which investors are paid out of the money input by other investors rather than out of profits.

"Brandeis is very important to the Foundation. We're going to continue to maintain a strong level of support," Pisciotta said.

"Though this has had an impact on our family, as well as our Family Foundation, the Foundation will honor all of its existing commitments," Carl Shapiro said in a Dec. 15 public statement.

French said, "[The administration has] had conversations with Carl Shapiro. Carl has assured the University that the Foundation gift pledges will be met. They have pledges outstanding for the science center and the admissions building.

"The Carl and Ruth Shapiro Family Foundation was shocked and horrified to learn about the allegations against Mr. Madoff, who has long been considered a trusted and effective leader in the investment field," according to a Dec. 16 statement on the Foundation's Web Site. "The Shapiro Family Foundation did have significant assets invested with Mr. Madoff. We are currently reviewing the situation and assessing all options available to recover those funds."

"So far we have had no indication from any of our donors that they have been or will be affected by the Madoff fraud," French said.

"We don't see anything on the horizon that's going to change that, but this is a very volatile situation," French added.

French said the Madoff scheme should not affect Brandeis' projections for the operating budget shortfalls for fiscal years 2009 or 2010. The gifts from the Shapiro family "were for capital projects, and [the Shapiros] have assured us that they're going to meet their pledge commitments. Their current pledges are for capital projects, not for operating purposes," French explained.

"So far, we have had no indication from any of our donors suggesting that they're going to cut back on their philanthropy because of the Madoff situation," French said.

University President Jehuda Reinharz could not be reached for comment on the impact the Madoff scandal might have had on Brandeis.

French said that the administration expects a general drop-off in gifts to the University as a result of the current economic situation, but he said that he would "not attribute the projected drop-off to Madoff specifically."

"I was stunned and saddened to learn about the allegations against Bernie Madoff," Carl Shapiro said in his Dec. 15 statement. "It is devastating to think that so many charities, individuals and institutions that had put their trust in Mr. Madoff have had their lives so negatively impacted. Though I have had a personal relationship with Mr. Madoff for more than 50 years, any decisions I or my family foundation made to invest with him were based on his apparent business acumen, sense of integrity and commitment to sound investing principles," he said.

When asked about whether future donations and contributions made by the Shapiro Family Foundation would be affected by the Madoff fraud, French said, "It just wouldn't be appropriate for me to speculate at this point."

According to the Dec. 16 statement on the Foundation's Web site, the Shapiro Family Foundation is "committed to building back the resources of our foundation and fully anticipate that the Foundation will continue to be a strong supporter of the region's nonprofits for many years to come.