Carl J. Shapiro

For the UC Berkeley professor, see Carl Shapiro (professor).

Carl J. Shapiro
Born	(1913-02-15) February 15, 1913
Residence	Boston and Palm Beach
Occupation	philanthropist and entrepreneur
Children	3 daughters

Carl J. Shapiro (born February 15, 1913) is an American entrepreneur and philanthropist. In 1939 he founded Kay Windsor, Inc. in New Bedford, Massachusetts and built it into one of the largest women's apparel companies in the country. He is its former president and chairman of the board and was director of Vanity Fair Corp., which acquired Kay Windsor in 1971. He retired in 1976.

Shapiro is among a group of investors who have experienced potential losses between $100 million and $1 billion in the Bernard Madoff hedge fund scheme. He is considered a benefactor of Madoff. It has been reported that a criminal investigation has commenced regarding his alleged complicity in the Madoff affair.

In 2010 Shapiro and various related people and entities agreed to forfeit $625 million to the United States, all of which will be made available to the victims of the fraudulent investment advisory business which was owned and operated by Bernard L. Madoff. Since at least the late 1960s, Shapiro was an investor in Madoff holding an account in his own name and controlling accounts held by various related individuals and entities. Over the course of his approximately 40-year relationship with Madoff and BLMIS, Shapiro invested hundreds of millions of dollars into his BLMIS accounts, but withdrew hundreds of millions more. In order to resolve any potential civil claims by the government against Shapiro and his family, the Shapiro family agreed to forfeit $625 million to the government—an amount in excess of Shapiro and his wife’s current net worth, as well as in excess of the fictitious profits that Shapiro and his wife took out of BLMIS. The settlement contains no finding or admission of fault against Shapiro or his family; the settlement does not, however, release any party from criminal liability.

Philanthropy

In 1961 The Carl and Ruth Shapiro Family Foundation was established. It supports community-based nonprofits focused on improving the lives of the disabled, disadvantaged, and disenfranchised. Its support has bolstered the work of about 65 organizations working in areas such as youth arts, adult education, domestic violence, and assistive technology for persons with disabilities. In December 2008, the Foundation lost about $145 million in Bernard Madoff’s Ponzi scheme.

Shapiro and his wife, Ruth became Brandeis University benefactors in 1950. Ruth joined the University's National Women's Committee in 1948. Carl served as a Brandeis Fellow from 1977–79, and as a Trustee from 1979 to 1988, when he became a Trustee emeritus. They gave $25 million, the largest gift in Brandeis history, to build the 2003 Carl and Ruth Shapiro Campus Center and funded the admissions center and endowed a chair in international finance held by Peter Petri, dean of the International Business School (formerly the Graduate School of International Economics and Finance). The Shapiros also funded the Carl and Ruth Shapiro Center for Library Technology and Journals in the Farber Library on campus. In January 2003 Shapiro received Brandeis' highest honor, an honorary degree, citing cites an "unshakable commitment to making the world a better place."

Shapiro founded the Carl J. Shapiro Institute for Education and Research at Harvard Medical School, Boston Medical Center, and Beth Israel Deaconess Medical Center in Boston. In 2005 The Shapiros donated $25 million to Brigham and Women's Hospital, for the world's most advanced cardiovascular care facility, the Carl J. and Ruth Shapiro Cardiovascular Center, designed to support one of the world’s leading teams of cardiovascular experts the world. In 2008 they also pledged $27 million to Dana-Farber/Brigham and Women’s Cancer Center to substantially upgrade and expand its facilities for cancer care services. Other contributions include: The Boston Museum of Fine Arts, Wellesley College, the Beth Israel Deaconess Medical Center, Boston Symphony Orchestra, the Kravis Center for the Performing Arts, the Norton Museum of Art, and the Palm Beach Opera, among other institutions.

Bernard Madoff friendship

Shapiro considered Madoff to be like a son. Shapiro is said to have invested with Madoff going back to the 1960s. He and his foundation reportedly lost some $550 million. Madoff received $250 million around December 1, 2008 from Shapiro, who was one of Madoff's oldest friends and one of his biggest financial backers. Shapiro expressed his sadness and disappointment at his friend’s dishonest dealings.

Shapiro's and Jaffe's accounts with Madoff were managed by Paul J. Konigsberg, senior tax partner at Konigsberg Wolf & Company, New York City. Konigsberg has been criminally indicted for working closely with Madoff to phony up investment records for Konigsberg's large clients to achieve targeted gains and tax losses. Regulators are looking into a brokerage firm, Cohmad Securities (taken from the names "Cohn" and "Madoff"), which is largely owned by Maurice Cohn (Maurice "Sonny" Cohn) and his daughter Marcia, President and Chief Compliance Officer, of whom Madoff shares 10–20 percent ownership stakes, and Madoff's firm's address in New York City. Peter Madoff, brother of Bernard, owns less than one share. Cohmad vice president Robert Jaffe's ownership of Cohmad was less than 5 percent.

Robert Jaffe

Jaffe "worked the Palm Beach, Florida circuit, and attracted many Palm Beach Country Club members as investors." Jaffe said he received a commission of 1% to 2% from an investor's first profit after he guided their money to Madoff. Jaffe paid commissions to financial advisers who steered cash to Madoff's fund. On January 14, 2009 William Galvin, Secretary of the Commonwealth of Massachusetts, who is in charge of the state's securities issues, filed suit against Jaffe, who promoted Madoff's funds to wealthy investors in Massachusetts and Florida. On February 4, compelled to testify, Jaffe invoked his Fifth Amendment right. On February 11, 2009, Galvin filed a complaint seeking to revoke the Massachusetts license of Cohmad Securities Corp., an accounting of all Massachusetts investors Cohmad referred to Madoff’s company, all the fees it earned doing so (more than $67 million), and a fine.

Financial Losses

On May 20, 2009 the family foundation of Carl Shapiro amended its taxes to reflect more than $140 million in losses in 2005. It reflected a 74 percent drop in income, to $1.2 million. The Foundation hired Caras and Shulman for accounting purposes. Their previous accounting firm, Konigsberg, Wolf & Co., was the firm Madoff recommended to many clients.

Personal life

Shapiro lives in Boston and Palm Beach. His wife, Ruth, died in 2012 at the age of 95. The Shapiros have three daughters. Carl turned 100 in February 2013. His daughter Ellen is married to Robert M. Jaffe, a money manager from Boston and Palm Beach, Florida. Another daughter, Rhonda Zinner (deceased), was on the Brandeis Board of Trustees and was a key organizer and planner in the family's philanthropic causes and projects, including the University's new campus center.

See also

• List of investors in Bernard L. Madoff Securities

External links

• The Carl and Ruth Shapiro Family Foundation
• "Who are Carl and Ruth Shapiro?", October 3, 2008
• "Jaffe Tarnished as Feds Investigate Madoff Connection", Palm Beach Post (December 20, 2008)
• Beth Healy, "Broker Jaffe Ordered to Appear at Madoff-Related Hearing", Boston Globe (January 15, 2009)