Madoff scandal shutters Chais Family Foundation

BOSTON (Reuters) - The alleged $50 billion fraud by Bernard Madoff has forced the Chais Family Foundation, which gives away about $12.5 million annually to Jewish causes, to close, its president said on Monday.

"The entire fund was invested through Mr Madoff, and as a result the fund has been completely obliterated" Avraham Infeld told Reuters by cell phone from Jerusalem, where the foundation is headquartered, adding that all five staff were let go.

U.S. agents arrested Madoff at his apartment Thursday after prosecutors said he told senior employees that his money management operations were "all just one big lie" and "basically, a giant Ponzi scheme."

(Reporting by Jason Szep, editing by Leslie Gevirtz)