Katzenberg says Madoff losses dire for his philanthropy

Hollywood mogul Jeffrey Katzenberg says the losses on his personal investments with Bernie Madoff have done "extraordinary damage" to his philanthropic efforts.

In an interview on CNBC today, the DreamWorks Animation SKG chief said it was a "disgrace" that Madoff remained free pending the next phase of his case.

Madoff, 70, is accused of running a $50-billion Ponzi scheme, resulting in massive losses for individual and institutional investors worldwide, including a number of Hollywood figures.

From Bloomberg News:

"The first time I heard the name Bernie Madoff was about three weeks ago when I found out that, you know, he had swindled all this money," Katzenberg said on CNBC. "This is extremely painful and humiliating for me," he said. "It has done extraordinary damage to my philanthropy."

Katzenberg’s funds were invested with Madoff via the studio executive’s business manager, Gerald Breslauer, the Los Angeles Times has previously reported.

Katzenberg didn’t provide details about the scope of his loss. But two sources have told The Times that he lost at least $20 million with Madoff.

Bloomberg noted that the Marilyn & Jeffrey Katzenberg Foundation listed assets of $22.1 million as of 2007, according to a September tax filing. Contributions in 2007 totaled $455,333, Bloomberg said, citing the filing.

That Madoff remains free "I think is a disgrace," Katzenberg told CNBC. "And this guy is living in a $7-million apartment today walking free. There is something very, very wrong."

Federal prosecutors are trying to persuade the judge handling the case that Madoff should be imprisoned pending trial.

Katzenberg, 58, serves on the boards of the Motion Picture and Television Fund, the Museum of the Moving Image, Cedars-Sinai Medical Center, California Institute of the Arts and the Simon Wiesenthal Center. He also as been a major fundraiser for AIDS Project Los Angeles.

-- Tom Petruno

Photo: Jeffrey Katzenberg (credit: Tracey Nearmy / European Pressphoto Agency)

Comments

[eric]

Why would a charity organization invest money in Madoff? Seems like this charity organization is just another tax shelter, dunno.

[Tom Petruno]

@eric: Many charities gave their funds over to Madoff to invest for them, hoping he would boost the return on the money.

Tom Petruno

[Ann]

That Madoff remains free "I think is a disgrace," Katzenberg told CNBC. "And this guy is living in a $7-million apartment today walking free. There is something very, very wrong."

(1) Madoff has not bee CONVICTED yet - sort of the prerequsite for putting people in jail and keeing them there.

(2) It is only a 'disgrace' if one hates the US Constitution which guarantees the right to bail if conditions can be met that insure the appearance of the Defendant in court.

Amazing the amount of over-the-top outrage over someone who stole money. Never see such posturing over a scam-contractor who took an old woman for $5000 and never paved her driveway or someone who conned an elderly person out of their savings of $25,000 by promising to 'manage it for them' by getting themselves on the ban accounts making bail . Never see such posturing when someone accused of murder makes bail.

Why is stealing from the uber-wealthy who got greedy for imporbable returns worse than stealing $5000 from someone who jsut wanated their driveway paved? Stealing is stealing.

[Robert Laughing]

Chances are, ALL these people will get their money returned, or a good piece of it, EVEN THOUGHT THEY ARE NOT COVERED BY SPIC , as the money was bundled by middlemen,and NOT ENTITLED to ANYTHING. All your eggs in 1 basket?? SPIC didn't do that!

[John]

Instead of referring to Charles Ponzi in 1903, the world needs to refer to this alleged scheme as a Madoff Scheme or the generic term--pyramid scheme.

It is not fair to honest and trustworthy Italian Americans.

[callie]

Amongst the rich, there was too much of an "exclusive boys network." Why they would entrust Madoff -- who did not charge fees, nor made it clear in his statements where their money was being invested -- is beyond me. The red flags were all over this guy, and yet ... why did they continuously miss the signs? Was their arrogance so great, or did they really not understand the basic practices of how investments work?

[Stephen]

I think it's funny that everyone scoffs at the wealthier people who lost the millions they worked hard for. Where is that same incredulity with regards to people who game the system and don't pay a cent in taxes while receiving welfare and stamps.

[David]

Madoff should have never been let go after all the damage and pain he has caused. His bail should be revoked immediately before he runs and hides with all the 'stolen' money he has managed to hide.

[andrew]

Ironic the greedy rich like Katzenberg who control the world (The Entertainment World at least!!) lost their money. These people are the elitists who have in fact run this country into the ground with their tunnel vision focused on short term gains and power and control to unregulate the world so they can dominate. This has destroyed democracy as we know it, but maybe they brainwashed us about thinking democracy was something good for ll people. The greedy rich went to Madoff.. why? to make more money... the poor people of the world are laughing and ecstatic. Now we just need a 21st Century version of the French Revolution...not only to rid us of Madoff but his clients too. I'll pull the rope!

[robert in az]

andrew, you're not alone in your thinking.

[Robert NO longer in LA]

VERY GOOD point, Andrew...but sadly, the average American is an IDIOT, who believes the 'story' of hard work, personal sacrifice Blah Blah Blah...there is NO equality, but simply the 'Predators' Ball', and you (and I) are but an appetizing morsel. What is most shocking to ALL of us, is that Madogg is Jewish, and he burned his own Temple, and all of it's worshipers, to ashes. THAT, will prevent him from doing what that other fugitive felon - NO, NOT Clinton's benefactor who contributed million$ to Clinton - but the one who fled, not to Israel, but SW Africa...there is NO place to hide for Madogg and his family of thieves.

[Adam Luftin]

I think as Jews, we need to come out against the Madoff's of the world with one united voice. Every time one of our own is involved in these high impact scams, we all take the hit for it to some degree. Our Rabbi's need to step up and remind all of us that greed knows no boundaries, and that a civilized society must reject this type of behavior with intensity. As Jews, we should march in the streets of Los Angeles hand in hand against what Madoff has done, show the world how angry we are that one of our own has done something like this.

[Rob McMillin]

Adam Luftin -- weren't the majority of the charities affected by this also Jewish charities? It was sort of a self-inflicted wound in that regard ... also, collective guilt is a silly idea, and subscribing to it one way or another doesn't help anyone.

[Steve]

Madoff should be in jail now, have a trial and then put to death. Yet the chumps that invested with him should accept some of the responsibility, it was a blatant scam day one. Look at the red flags: returns that were too good to be true year after year, many invested based on religion and did no due diligence thinking a Jew will not screw a fellow Jew, get real., too many family and friends worked for Madoff and should be jailed.

[stewart]

HA!!!

KATZENBERG A PHILANTHROPIST? AFTER THE INFAMOUS KATZENBERG LETTER OF 92 WHERE HE ADMONISHED PRODUCERS AND STUDIOS TO NOT NEGOTIATE WITH THE TRADES AS UNION CONTRACTS CAME UP? AND DEMANDED A PAY CUT FOR EXTRAS WHO MADE MINIMUM WAGES TO BEGIN WITH?
DROP DEAD KATZENBERG, BIRDS OF A FEATHER TO YOU AND YOUR CROWD, YOU HAVENT A CLUE AS TO WHAT HAS BEEN GOING ON DOWN HERE ON THE GROUND FOR YEARS!
ITS YOUR CROWD WHO RAPED THE ECONOMY TO YOUR ADVANTGE THAT ARE MOST RESPONSIBLE FOR WHAT IS HAPPENING TODAY AND WILL CERTAINLY GET WROSE FROM ALL ACCOUNTS AS YOU SIP CHAMPAGNE, EAT FOI GRAS AND BEMOAN THE ROLLS ROYCE IS DUSTY WHILE YOU ALL PLAN YOUR VACTION IN YOUR PRIVATE JETS?

[Adam Luftin]

Hi Rob,

You are confusing "collective guilt" with "collective anger". My Jewish friends and I are feeling anger, not guilt. There is nothing wrong with us coming together as a unified group to show our outrage over what has been done to everyone involved in this horrific loss.

[bruce]

he's not only living in a $7 million apartment...
he's still drinking domaine de la romanee-conti every night from his cellar...
foie gras sent up by new york's finest caterers...
and in between bites of foie gras, he's thinking about how to do a marc rich or robert vesco.

see, when a boy from the hood gets caught with a fifty dollar rock, they put him somewhere where he has to worry about dropping the soap in the shower. it's a sign of our group deference toward money and those who have it that madoff isn't worried about that as he steps into his park avenue jacuzzi. we can address this disparity in one of two ways, either a peaceful economic restructuring to support and benefit middle-class people like you and me, or a french revolution-style tumbrels to the guillotine bloodbath. i prefer option one, but i think option two is more likely.

[Joe]

This guy has got to be kidding me! He has an estimated fortune of 800 million after the finacial meltdown. What he doesn't have any more money to give (if he wants) what a joke! He is angling for a government hand out. These charities and scams any way. It provides a tax shelter for these morons is what it does. do you know that they only have to pay out 5% of the money each year? This is how it works. Collect 10 million in donations, hand out 500,000. Earn from madoff 1 million. that leaves you 500,000 up. Do this for say 10 years or so and before you know it you can have a charity large enough that you an hire yourself for a half mil a year or one of his children and bingo job for life making great money doing nothing till you die. And you can put a piece in every year to avoid taxes while keeping it under your control and pauing yourself a hefty salary for doing so. SO WHAT IF IT BLEW UP IN HIS FACE TOO BAD. If he really wanted to he has tons of money to help people don't come cryin' round here you bum!

[Paul Scipio]

Dumb ass greedy liberals, don't feel sorry for them when one of their own (Madoff) ripped them off and another one of their own (the judge) let's the thief sleep in his own bed in his own $7,000,000 home while he try's to hid his assets. The best thing to come out of this is the liberal mind numbing charities go with out funding and will have to cut back on brain washing your children with MTV, Thug/Pro Basketball, legalize drudge life style.

[Stephanie]

Cry me a river, please. Katzenburg, sell one of your mansions if you want to quickly make up for the loss. No sane wealthy person would put all their money, or even half, in one place. Some will probably get some back. Meanwhile, the rest of us are scraping by trying to keep from losing our homes.

[Russ]

Jeffrey Katzenberg is a "special secret" guy; Bernie Madoff is also a "special secret" guy. They both met "special secret" people who affect our daily lives, so they think. Jeffery & Bernie did "special secret" things together, though the article doesn't say they most likely gazed into each others eyes, and thought of ways to get "free money" while sitting on their asses. Charities my ass! They do nothing, but take tax-write-offs and a 30% charity salary for themselves. Both secret Jeffrey & Bernie reap what they sowed, Buying federal judges, police departs, and now cry poor.

[Peter J. Andros]

The only "something that is very, very wrong" Katzenberg is that you had
all that money in the first place to throw around, you greedy scumbag...you're no better than Madoff for all the pain and embarrasment you've caused others in the "entertainment" business and ordinary people in life...if anyone's a "disgrace," it's you...you're just a thief of another kind...

[CHANYE]

>>>> ANDREW 7 P.M. <<<<

SPOT ON FELLA !!! YOU TOOK THE WORD's RIGHT OUT OF MY MOUTH !!!