Shearman advises Boston charity over Madoff losses

Shearman & Sterling has landed a lead role advising one of the largest victims of US hedge fund manager Bernard Madoff’s $50bn (£33bn) pyramid scheme.

New York-based partners Steven Molo and James Garrity are leading a team advising Boston-based philanthropists Carl and Ruth Shapiro, who invested in excess of $500m (£329m) in the Madoff funds.

Molo said: “The saddest thing about it is that the Shapiro family and their foundation are well known in Boston for their charitable investments and play a significant role in the community.”

The move comes after details of Madoff’s pyramid scheme emerged in December last year. Madoff was arrested on 11 December for securities fraud.

The Shapiro’s charitable foundation has lost about half of its assets, around $145m (£95m) while the Shapiro family has lost approximately $400m (£263m) in personal funds.

Madoff is receiving legal advice from Dickstein Shapiro partner Ira Sorkin. Madoff appeared in court in Manhattan this week accused of criminal securities fraud.

Sorkin was unavailable for comment.