Westport National Bank today sought to assure customers and employees that it acted only as a custodian for customers investing in Bernard Madoff Investment Securities.
Westport National Bank sent a letter to customers and employees saying it acted only as a custodian for customers investing with Bernard Madoff. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com/file

The bank sent a letter to clients and employees after two law firms in Florida said investors had retained them to investigate claims that the bank had sent customer funds to Madoff, a securities dealer under investigation for an alleged $50 billion Ponzi scheme. (See WestportNow Dec. 31, 2008)

“First, be assured that the Bank has not invested any of its own funds or the funds of its depositors with Madoff, and the Bank has not advised any customer or anybody else to invest with Madoff,” said Richard T. Cummings Jr., president of the bank at 1495 Post Road East, a division of Connecticut Community Bank, N.A.

In 1999, at the request of an unidentified local company, Westport National Bank replaced another financial institution as the custodian for a number of individuals and entities that were investing with Bernard L. Madoff Securities, Cummings said.

UPDATE Two Florida law firms said today they have been retained by Florida investors to investigate claims against various third parties in connection with the Bernard Madoff alleged Ponzi scheme, including Westport National Bank on Post Road East.
Two Florida law firms said they are investigating claims made against the Westport National Bank at 1495 Post Road in connection with Bernard Madoff. The bank denied any wrongdoing. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com/file

In a statement, West Palm Beach-based McCabe Rabin and Boca Raton-based Stein, Stein & Pinsky said they had learned that investors in Florida and other states were solicited by a promoter to invest with Westport National Bank, a division of Connecticut Community Bank, N.A.

Both the promoter and Westport National Bank charged fees to investors who were placed with Bernard L. Madoff Investment Securities, the statement said.

“When the news broke that Madoff’s operation was a Ponzi Scheme, the investors were devastated to learn that their millions ‘on paper’ did not exist,” the law firms said.

UJA/Federation of Westport Weston Wilton Norwalk has no investments with Bernard L. Madoff Securities, Inc., the Westport group said today. It said its current operations are unaffected by the scandals surrounding Madoff. 

“Mr. Madoff’s association with many Jewish philanthropies could cause concern that UJA/Federation of Westport Weston Wilton Norwalk might be affected, and we want our donors and beneficiary organizations to know that our investments are not affected,” said Steven M. Friedlander, executive director of UJA/Federation WWWN.

“This organization’s self-managed funds are primarily in FDIC-insured bank accounts and government securities. Rest assured, we are able to carry out our mission and make good on our commitments for the current fiscal year.”

UJA/Federation WWWN is a member of the Jewish Community Endowment Foundation, based in Stamford.

Westport’s two newspapers, the Hearst Corp.-owned Westport News, and Journal Register Co.-owned Westport Minuteman, are targets of their out-of-town corporate owners to reduce expenses.

Employees of the Westport News, which publishes on Wednesdays and Fridays, were among those sent letters today warning of job cuts in the first quarter of 2009, according to a story published on the Web site of the Hearst-owned Connecticut Post.

Meanwhile, Journal Register this week laid off the publisher of the Westport Minuteman and Fairfield Minuteman, which publish Thursdays, following an earlier reduction of the Westport reporting staff to one. A publisher of one of its Litchfield County newspapers has assumed the Westport and Fairfield publisher duties.

And on Thursday Journal Register informed employees it was shutting down 16 of its other Connecticut weekly newspapers affecting 21 editors and reporters, according to the New Haven Independent Web site. Eight are in the company’s Shore Line division and the eight in its Elm City chain.

Passport to Westport, a business promotion effort by a group of Westport retailers calling themselves Locals for Locals, is available beginning today at the 15 participating businesses and their Web sites. The brochure features offers and discounts at each of the participating retailers. Robin Scarella, (c), of PR firm Connections, looks over the publication with representatives of the participating businesses, Steve Knowles (l) of Allegra Printing, and David Gerard, owner of Born of Earth Spa. (CLICK TO ENLARGE) Joyce Laitman photo

Westport First Selectman Gordon F. Joseloff said today that Westport’s pension plans, unlike those in Fairfield, had no assets invested with funds controlled by Bernard Madoff.

“Fortunately, Westport did not invest with any of the Madoff entities,” he said. “We’ve checked with our pension advisers and while they certainly were aware of him and his record, they did not deem his investment offerings prudent for our funds.”

The Town of Fairfield has said it had about $42 million in pension fund assets in funds controlled by Madoff.

Madoff, 70, confessed to employees last week that Bernard L. Madoff Investment Securities LLC was “a giant Ponzi scheme” that cost clients $50 billion.

Edward T. Reilly: heads Board of Governors of military service organization. Contributed photoWestporter Edward T. Reilly, president and chief executive officer of American Management Association, has been elected chairman of the board of governors of United Service Organizations, Inc.

Founded in 1941, the nonprofit agency which is better known as the USO, offers support services to American military personnel and their families. While perhaps best known for its celebrity entertainment tours, the USO provides other vitally needed services to military families.

Reilly, 62, has served on the USO’s all-volunteer board since 2002 and as its vice chair since 2007.

“I am honored to assume this new role for the USO,” Reilly said in a statement. “Every time I visit a USO center, I am inspired by the dedication and loyalty of these magnificent men and women.”