The New Era Scandal

Montgomery McCracken was liaison and co-lead counsel for over thirty charities victimized by the Foundation for New Era Philanthropy investment scam. New Era was supposedly a fund-raising organization created by a very wealthy individual who wanted to remain anonymous. In fact, New Era was a massive, fraudulent “Ponzi” scheme, in which early participants were paid off with dollars contributed by later participants. When the scam collapsed it scandalized the world of philanthropy, with more than $100 million in losses and a list of victims that included some of America’s best-known charities and philanthropies. The clients Montgomery McCracken represented recovered almost 100 percent of their losses.