Following the Bernie Madoff scandal, Hadassah Chief Operating Officer Larry Blum levied accusations of wrongdoing against then national treasurer and current national president Marcie Natan and then national president Nancy Falchuk. An investigation was launched by the American women’s Zionist organization by the independent law firm of Skadden, Arps, Slate, Meagher and Flom, LLP and headed by attorney Dan Kurtz.
In his final report issued on April 18 Kurtz announced: “The committee’s investigation was in-depth and thorough. After performing an extensive investigation, the conclusion the committee reached regarding the Blum allegations was that none of them were supported by facts. No volunteers, including Marcie Natan and Nancy Falchuk, breached any fiduciary duties owed to Hadassah in connection with the allegations.” The report concludes with Kurtz’s committee stating that no further action needs to be taken with respect to the Blum allegations.
In late 2010 Hadassah agreed to terms with the court-appointed trustee in the Madoff bankruptcy proceedings where the organization repaid nearly $46 million in funds. The original amount invested in Madoff’s firm was $33 million, but the organization withdrew $137 million in payments over the course of three decades before the ponzi scheme collapsed in 2008 and Madoff was sent to prison.
With the investigation underway Blum has been on an administrative leave of absence. No comment has been made as to Blum’s continuation as CEO of Hadassah now that the investigation has been discharged.