The Brown Daily Herald – Several colleges and universities are sustaining large financial losses in the aftermath of Bernard Madoff’s $50 billion hedge fund scam.

Madoff defrauded investors by using money collected from new investors to pay off existing ones – an illegal strategy known as a Ponzi scheme after the man who developed it. The entire scheme collapsed when Madoff was unable to find new investors to continue paying his clients, the New York Times reported Dec. 12.

Yeshiva, Tufts and New York Universities and Bard College had all invested with Madoff before his scheme was revealed late last year. NYU was hit hardest, losing $24 million dollars. Tufts lost $20 million, Yeshiva $14.5 million and Bard $3 million, according to the schools’ respective media relations offices.

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