ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, August 24, 1996 TAG: 9608260025
SECTION: BUSINESS PAGE: A-4 BUSINESS EDITION: NEW RIVER VALLEY
DATELINE: PHILADELPHIA
SOURCE: Associated Press
Nonprofit organizations victimized by the biggest charity fraud in U.S. history will get up to 65 percent of their invested money back under a $39 million settlement approved by a federal judge.
The decision by U.S. Bankruptcy Judge Bruce Fox means groups hit by the collapse last year of the Foundation for New Era Philanthropy could see some of the money by Christmas.
``It may not be perfect, but it's the nearest thing to perfect I think we'll see,'' said Rollin Van Broekhoven, a judge who helped draft the settlement.
New Era, based in suburban Philadelphia, persuaded universities, museums and other nonprofit organizations to put up money, and promised to double it with contributions from anonymous donors.
But authorities said that there were no anonymous donors and that New Era was no more than a pyramid scheme, in which investors were paid with money invested by new participants.
Under the settlement, groups that made money will have to return their profits to reimburse those organizations that lost their original investments.
The losers will be reimbursed at up to 65 cents on the dollar.
The settlement, reached Thursday and made public Friday, covers about 84 percent of the groups that lost money and about 79 percent of those that gave to the charity.
Lawyers are negotiating with the remaining groups to join the agreement.
A federal grand jury is investigating New Era president John G. Bennett Jr.
LENGTH: Short : 39 linesby CNB