3e884de5__Private_Postsecondary_Schools__Explanation
[Institution] Texas A&M Foundation (Tex.) [Tax year] 2009 [Explanation] 
The foundation became aware of a diversion of its assets during the tax year. One of its investment managers, at their discretion, used foundation funds to purchase units in a portfolio of investments organized as a business trust. The trust, in turn, made an investment with an entity which placed the funds in what was later characterized as a “Ponzi scheme.” This resulted in a loss of $4.2 million to the foundation. On March 17, 2009, the IRS released Revenue Ruling 2009-09 and Revenue Procedure 2009-20 dealing with the tax treatment of so-called Ponzi scheme losses. Since notification of the loss, the foundation has terminated its relationship with the investment manager and is seeking remedies available under the law.
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Explanation