U. files claim for $1.55 mil. from New Era

Documents filed in U.S. Bankruptcy Court this week reveal that the University has submitted a claim for $1.55 million against the bankrupt Foundation for New Era Philanthropy. The filing comes as somewhat of a surprise since administrators said this summer that the University actually profited from its investments with the Radnor, Pa.-based charity. According to a report published by The Chronicle of Higher Education in June, the University had invested $3.95 million with New Era and had received $6.05 million in return, for an apparent net gain of $2.1 million. University spokesperson Barbara Beck said these amounts "are in flux and are subject to question" until the University's auditors have completed their work. "We have no way of knowing right now how we stack up and how other organizations stack up in comparison," she said, explaining the apparent discrepancy between the University's investment and the amount it claims it is owed. The University's claim was filed on Monday, the deadline date imposed by Bankruptcy Judge Bruce Fox earlier this month. To date, 466 claims have been filed against New Era by various individuals, colleges and foundations, totaling more than $300 million. New Era had accumulated donations by promising nonprofit groups that it would double their investments in six months. The charity declared bankruptcy in May. Investigators have since alleged that New Era operated as an elaborate pyramid scheme, with its president, James Bennett, Jr., paying off old investors with proceeds from new groups. Beck said she did not know when the auditors will be finished examining the University's financial dealings with New Era. University General Counsel Shelley Green, who is handling these proceedings, referred all questions to Beck. Morton Branzburg, the Center City lawyer listed on court documents as a representative of the University's Board of Trustees, did not return telephone calls yesterday. Some schools and institutions that received payouts from New Era, such as the University of South Florida, suggest in court documents that they would be willing to return the monies they were given because of the staggering losses many New Era investors have sustained. Beck said the University will cooperate with any directives of this nature issued by Judge Fox. "We will not seek to benefit at the hands of another charity," she said. "Rather than benefit, at the appropriate time we will contribute, if asked, money to an equitable resolution of the whole matter." The New Era collapse has not changed the University's investment strategy, Beck added. Bankruptcy Court clerks said yesterday they did not know if the flood of claims filed on Monday had been fully entered into the court docket. As a result, the total number of recorded claims against New Era -- and the dollar figure for losses -- may rise again.