Jeffry Picower
Jeffry M. Picower | |
|---|---|
| Born | Template:Birth date Bronx, New York, U.S. |
| Died | October 25, 2009 (aged 67) Palm Beach, Florida, U.S. |
| Occupation(s) | Financier, certified public accountant, attorney |
| Known for | Top recipient of gains from Madoff's Ponzi scheme; largest single forfeiture in U.S. legal history settlement |
Jeffry M. Picower (May 5, 1942 – October 25, 2009) was an American financier linked to the Madoff investment scandal. He emerged as the top recipient of gains from Madoff's Ponzi scheme, with his widow consenting to a $7.2 billion settlement of claims against his estate by Madoff trustee Irving Picard—marking the largest single forfeiture in U.S. legal history.
Business activities
Born into a Jewish family in the Bronx, New York, Picower was both a certified public accountant and an attorney,[1] but he accumulated the majority of his fortune through investments with Madoff.[1]
During the 1980s, while working as an accountant at Laventhol & Horwath, Picower created controversial tax shelter arrangements.[2] After scrutiny from the IRS, a client initiated a lawsuit against him and the firm; this matter was resolved outside of court.[2] In 1983, the U.S. Securities and Exchange Commission reprimanded him for failing to timely disclose a significant ownership interest in a company involved in a merger.[2]
In 1991, Picower collaborated with Anthony Cerami to establish the Picower Institute for Medical Research, backed by a $10 million endowment.[2] Under the direction of Kevin J. Tracey, the institute made significant strides in research potentially beneficial for conditions like rheumatoid arthritis, Crohn's disease, and multiple sclerosis.Cite error: Closing </ref> missing for <ref> tag
Association with Bernard Madoff
The Jeffry M. and Barbara Picower Foundation, created in 1989 by Picower and his wife Barbara, entrusted over $1 billion in assets to longtime associate Bernard Madoff. The foundation contributed more than $268 million in grants to various U.S. institutions including Human Rights First and the New York Public Library. In 2002, it donated $50 million to support neuroscience research at the Massachusetts Institute of Technology, leading to the renaming of the facility as the Picower Institute for Learning and Memory. The foundation ceased operations in 2009 due to losses tied to Madoff's Ponzi scheme.
From December 1995 through December 2008, Picower and his family withdrew $5.1 billion more than their principal investment from Madoff-managed accounts. In June 2009, trustee Irving Picard initiated legal action seeking $7.2 billion in profits, asserting that Picower and his wife either knew or should have been aware that their extraordinarily high returns—some accounts reflecting annual gains between 120% and over 950% during 1996–1999—were implausible. This positioned the Picowers as the largest beneficiaries of Madoff’s fraud, exceeding even Madoff himself. Their attorney denied any involvement in wrongdoing, emphasizing their shock upon learning of the deception. It was reported that Madoff retained Picower as a client because he was "too big to fire," given the magnitude of his investments.
A court filing from November 2009 revealed an unusual transaction: in April 2006, Picower transferred $125 million to Madoff, which purportedly increased to $164 million within two weeks based on securities purchased three months prior. Five months later, Picower withdrew the original $125 million amount, leaving $81 million remaining in the account—actions lacking any reasonable explanation or indication that they escaped Picower’s attention.
Death and settlement
Jeffry Picower passed away on October 25, 2009, at his residence in Palm Beach due to a massive heart attack that led to an accidental drowning in his pool. He was declared deceased at Good Samaritan Medical Center and subsequently laid to rest on October 27, 2009, at Mount Ararat Cemetery in Farmingdale, New York.
A settlement amounting to $7.2 billion was finalized on December 17, 2010, between Irving Picard and Barbara Picower, the executor of Picower's estate. This agreement resolved the trustee lawsuit related to the Madoff fraud and facilitated the reimbursement of victims' losses. The settlement stands as the largest single forfeiture ever recorded in U.S. legal history. U.S. Attorney Preet Bharara commended Barbara Picower for her cooperation throughout the process.
Following the settlement, in 2011 Barbara Picower reengaged in philanthropic endeavors by founding the JPB Foundation, utilizing funds remaining from Jeffry Picower’s estate. According to Forbes, this foundation was initiated with an endowment of $1.2 billion. By 2018, the JPB Foundation's assets had grown to exceed $3.7 billion, positioning it as the 24th-largest grant-making foundation across the United States. Barbara Picower holds the roles of President and Director within the organization.