Autopsy Underway On Philanthropist Linked To Madoff Scandal

October 26, 2009 12:49 p.m. EST

Palm Beach, FL (AHN) - An autopsy was underway Monday to determine the cause of death of Jeffry Picower, a billionaire whose reputation for philanthropy was sullied by his friendship with disgraced financier Bernard Madoff.

Picower was found at the bottom of a pool at his $28 million estate shortly after noon by his wife, Barbara, who called emergency personnel. He was taken to a local hospital where he was pronounced dead about 90 minutes later.

Police are reported to be investigating the death as a drowning.

Spokespersons for the Picower family said the 67-year-old entrepreneur had a history of heart problems and also suffered from Parkinson's disease.

Picower and his wife were noted for their charitable contributions to education, medical research and human rights through their Picower Foundation. They also gave $50 million to the Massachusetts Institute of Technology in 2002 to establish the Picower Institute for Learning and Memory.

They were forced to close the foundation in December after the arrest of Bernard Madoff, who pleaded guilty in March to operating a $67 billion Ponzi scheme. The foundation's entire endowment had been invested with Madoff.

A bankruptcy trustee charged with recovering investors' money from Madoff's investment scheme sued Picower in May to recover $6 billion they withdrew from their account over the years. The trustee, Irving Picard, charged that Picower who held an MBA degree and was an attorney, should have known of the shadowy nature of Madoff's investment firm. Picard said Picower sometimes received returns as high as 950 percent.

At the time of his death, Picower was in negotiations with the trustee to avoid lengthy court proceedings.