Beth Israel Deaconess Urged to Investigate Member of Board of Overseers Who Raised Millions for Madoff
Jaffe twice failed to appear after being subpoenaed by Secretary of State
However, it is not clear if Beth Israel Deaconess has conducted its own investigation into Jaffe or requested his resignation from the Board of Overseers. Yesterday, 1199SEIU United Healthcare Workers East sent a letter (attached) to the BIDMC Board of Directors, urging them to investigate Jaffe's conduct and remove him from the Board of Overseers if appropriate.
"It's a sad irony that someone who raised millions for the what may be the biggest Ponzi scheme in history is on the BIDMC Board of Overseers," said 1199SEIU Executive Vice President
The Board of Overseers of BIDMC is charged with supporting the charitable endeavors of the organization and acting as goodwill ambassadors to the community. Given the high profile nature of the scandal, and its effect on several of BIDMC's largest donors, the primary duties assigned to the Board of Overseers may be hindered by the presence of Mr. Jaffe. 1199SEIU sent the letter as part of an overall commitment to holding health care providers accountable to their patients, communities and caregivers, as well as to their charitable and fiduciary duties.
As an indication of the far-reaching impact the Madoff scandal has had on local charities, one
Representing more than 340,000 healthcare workers throughout
To BIDMC Board of Directors:
1199 SEIU is committed to holding health care providers accountable to the communities they serve and to their charitable missions. We write to raise a concern about
Overseers are charged with acting as goodwill ambassadors on behalf of BIDMC and are supposed to "demonstrate significant interest in and support for [BIDMC] and its charitable mission."(1) If an individual is unable to fulfill such a role, it raises questions about whether he or she should continue to serve on the board.
While Jaffe's role in the alleged scheme is yet to be determined, you may wish to conduct your own investigation to determine whether the allegations are true and, whether, regardless, they adversely impact his ability to effectively serve as an Overseer of BIDMC.
Given current scrutiny of nonprofit hospitals, as fiduciaries of BIDMC entrusted with overseeing the charitable mission of the institution, if you determine that these allegations adversely affect Jaffe's service, you may wish to remove him from the Board of Overseers if he has not already resigned.
Please feel free to contact me at (617) 284 -1199 to further discuss this matter.
Executive Vice President
cc: Board of Overseers
(1) BIDMC Bylaws, section 13.1 and 13.4.2 dated
(2) Madoff Victim List, The New York Post,
(3) "Mass. Financiers on Madoff client list," Boston Globe,
(5) "In The Matter of Cohmad Securities Corporation: Administrative Complaint and Ex Parte Motion for an Order Summarily Suspending Registration as a Broker-Dealer," Docket No. 2009-0015, Commonwealth of Massachusetts Office Of The Secretary Of The Commonwealth, Securities Division,
(6) "Jaffe appears for Mass. Securities inquiry," Boston Globe,
SOURCE 1199SEIU United Healthcare Workers East