The Charleston (W.Va.) Area Medical Center joined several European banks and Steven Spielberg on a long list of investors exposed to an alleged fraud by New York money manager Bernard Madoff. Gail Pitchford, president of the Charleston Area Medical Center Foundation, said the losses amount to less than 1% of its $143 million investment portfolio.
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The hospital isnt the only healthcare institution to see investments evaporate after regulators charged Madoff with securities fraud. North Shore-Long Island Jewish Health System, a system in Great Neck, N.Y., that owns 10 hospitals, had $5.7 million invested with Madoff.
Pitchford described the foundations $800,000 loss as unfortunate but not a significant amount. The missing investments wont alter the foundations planned $3 million annual gift to the hospital. The money ended up with Madoff through two funds managed by the foundations money manager, Morgan Keegan, who says the foundation is pursuing legal options to retrieve what can be salvaged.
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