Four Lawsuits Over Charity Fraud Settled

Prudential Securities Inc. will pay $18 million to settle four lawsuits filed by dozens of nonprofit groups following one of the biggest charity frauds in U.S. history. The agreement covers complaints by groups bilked in the collapse of the Foundation for New Era Philanthropy, which had promised to double the organizations’ investments with contributions from anonymous donors. Prudential Securities was the broker for the charity. A federal district court judge in Philadelphia approved the settlement, but a federal bankruptcy judge still must agree to the arrangement. More than 600 religious groups, colleges, museums and philanthropists claimed more than $500 million in losses when New Era, based in Radnor, Pa., went under in 1995.