Texas Tech victim of Madoff Ponzi scheme - KCBD NewsChannel 11 Lubbock

5/6/09

Texas Tech victim of Madoff Ponzi scheme

By Ann Wyatt Little  - bio | email

LUBBOCK, TX (KCBD) - NewsChannel 11 has learned that Texas Tech is the victim of a nationwide Ponzi scheme.

You might recall New York Investment Manager Bernard Madoff is now serving prison time after being found guilty for bilking billions of dollars from investors. Texas Tech is among his many victims.

Texas Tech Vice Chancellor Jim Brunjes says the university invested with a man named Ezra Merkin. Merkin then invested billions of dollars of university funds from all over the nation with Madoff's fund. Texas Tech has not alleged that Merkin knew the true nature of Madoff's fund.

Brunjes says not all of the Texas Tech investment went to Madoff. He thinks Tech's loss might be $4 to 5 million. That's a very small percentage of the school's overall endowment which is in excess of $700 million. Brunjes says Tech invested with Merkin on the advice of a St. Louis based company called Hammond & Associates. 

According to an official Board of Regents agenda, on Thursday and Friday Texas Tech Regents will consider hiring an outside lawyer to sue Merkin. The agenda also indicates that regents be asked by staff if Hammond & Associates should be sued as well.

NewsChannel 11 was unable to reach Hammond & Associates by phone after getting information early Wednesday evening from Texas Tech. Hammond says in a previous written statement that they have no connection to Madoff. 

Right now Tech cannot recover any of the Merkin fund because of a court ordered injunction. New York University and the New York Attorney General both sued Merkin. Merkin's attorney was quoted as saying the NYU lawsuit has no merit.

Texas Tech wants to emphasize that only $4 to 5 million is at risk.

©2009 KCBD NewsChannel 11. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

  • Local News on KCBD.comNewsMore>>

  • North Korea slams Pence as summit with Trump grows shakier

    North Korea slams Pence as summit with Trump grows shakier

    Wednesday, May 23 2018 8:51 PM EDT2018-05-24 00:51:44 GMT
    Thursday, May 24 2018 4:02 AM EDT2018-05-24 08:02:37 GMT
    (AP Photo/Ahn Young-joon). Women protesters stage a rally for peace on the Korea peninsular near U.S. Embassy in Seoul, Wednesday, May 23, 2018. U.S. President Donald Trump labored with South Korea's Moon Jae-in Tuesday to keep the highly anticipated U...(AP Photo/Ahn Young-joon). Women protesters stage a rally for peace on the Korea peninsular near U.S. Embassy in Seoul, Wednesday, May 23, 2018. U.S. President Donald Trump labored with South Korea's Moon Jae-in Tuesday to keep the highly anticipated U...
    A top North Korean official says recent comments by U.S. Vice President Mike Pence were "stupid" and "ignorant" and again warns the country is willing to pull out of a planned summit with Trump.
    A top North Korean official says recent comments by U.S. Vice President Mike Pence were "stupid" and "ignorant" and again warns the country is willing to pull out of a planned summit with Trump.
  • Syria state-run media reports US-led airstrike on army posts

    Syria state-run media reports US-led airstrike on army posts

    Wednesday, May 23 2018 9:11 PM EDT2018-05-24 01:11:43 GMT
    Thursday, May 24 2018 3:53 AM EDT2018-05-24 07:53:52 GMT
    A Pentagon spokesman said there was "no information" to confirm or deny the reports. (Source: Raycom Media)A Pentagon spokesman said there was "no information" to confirm or deny the reports. (Source: Raycom Media)

    Syrian government-run media outlet is reporting that U.S.-led coalition airstrikes have struck Syrian army positions in eastern Syria near the front lines with the Islamic State group.

    Syrian government-run media outlet is reporting that U.S.-led coalition airstrikes have struck Syrian army positions in eastern Syria near the front lines with the Islamic State group.

  • Judge: President can't block critics on Twitter

    Judge: President can't block critics on Twitter

    Wednesday, May 23 2018 1:43 PM EDT2018-05-23 17:43:15 GMT
    Thursday, May 24 2018 3:52 AM EDT2018-05-24 07:52:13 GMT
    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

Powered by Frankly