What I have learned is that economists and weathermen go to the same schools and those that can add are graduated as weathermen and the rest are awarded the economist degree.
Madoff was assiduously courted by numerous so-called "non-profits," tax-exempt charities, and family foundations either as outright investors, or through hedge funds. We have to ask why the tax-exempt landscape is littered with these "foundations and charities."
Apparently Brooklyn, NY residents registered some 800 tax-exempts with hundreds of millions in assets in Lakewood-----a small flea-bitten central New Jersey town. SOURCE http://www.taxexemptworld.com/organizations/lakewood_nj_08701.asp
The IRS has tagged tax-exempt non-profit "charities and foundations" as the locus classicus for IRS fraud. But non/profits are legally entitled to raise tax-exempt funds. How does tax evasion play into this?
NON-PROFIT TAX EVASION 101---a zillion ways to play the tax evasion game.
BUSINESS DONORS Keep in mind that many donors have highly profitable businesses upon which taxes must be paid----these taxable monies could be taken out of the businesses in various sub rosa schemes to evade taxes and US banking laws: Phony line items listing fake vendors, admin fees, legal fees, building fees, phantom employees. Wire transfers to dummy companies.
There's also the suitcase full of cash trick----island-hopping trips to friendly banks (necessitates buying a whole new wardrobe after the bank visit).
DONATIONS IN THE HANDS OF N/P The n/p scams would take 25 single-spaced typed pages to outline. However, most used is: (1) the "charity or foundation " takes a cut of the "donation" then wire transfers the bulk offshore for the donor's use later. (2) One "charity or foundation" donates to another "charity or foundation" ---- a HUGE money laundry scheme. The receivers of the donation launder the money, so that the donor can retreive it later. Can also evade FEC regs by laundering the tax-exempt donation into campaign accounts.