Some of Boston's wealthiest and most prominent philanthropists have lost millions of dollars to a Wall Street investor accused of running a $50 billion Ponzi scheme, a case that has already shuttered one foundation and could hurt nonprofits in medicine, education, and the arts.

Bernard L. Madoff, a former chairman of the Nasdaq Stock Market, was arrested Thursday in Manhattan and charged with securities fraud by federal authorities.

His clients include philanthropists Carl and Ruth Shapiro, major donors to the Museum of Fine Arts, Brandeis University, and Beth Israel Deaconess Medical Center. The Shapiro family foundation lost almost half its money, or about $145 million, to Madoff. Other clients include Avram and Carol Goldberg, former owners of the Stop & Shop supermarket chain, and Stephen A. Fine, president of Biltrite Corp. in Waltham.

In Salem, the Robert I. Lappin Charitable Foundation, a private family organization that financed trips for Jewish youth to Israel, said it was forced to shut down and lay off seven employees yesterday after losing all of its estimated $8 million to Madoff. The foundation also supports Jewish educational and cultural services on the North Shore. Lappin lost personal funds as well.

"We are all devastated," said Deborah Coltin, executive director of the Lappin foundation. "You put your faith in someone. It turns out to be a huge scheme." Authorities say Madoff confessed to effectively paying one set of investors with money he took in from others.

"IAVA applauds President-elect Obama and the transition team for making this historic selection. General Shinseki has a record of courage and honesty, and is a bold choice to lead the VA into the future. The President-elect has demonstrated an understanding of the urgency of the issues facing America's veterans by making this announcement early. General Shinseki is widely-respected, honest and experienced. He is a man that has always put patriotism ahead of politics, and is held in high regard by veterans of Iraq and Afghanistan. IAVA looks forward to supporting him to implement the historic change that is needed at the VA.

As a wounded, decorated, combat veteran, and the first Asian American in US History to be a four-star general, General Shinseki, has the potential to be an effective and dedicated advocate for veterans of all generations.

This is a critical time for veterans. One in five veterans returning from Iraq and Afghanistan are facing serious mental health injuries like Post Traumatic Stress Disorder (PTSD) or depression. Wounded veterans are waiting months, sometimes years, to receive disability benefits. The struggling U.S. economy is hitting new veterans especially hard. And the new GI Bill, which will make college affordable to every veteran of Iraq and Afghanistan, must be implemented by August 2009.

General Shinseki has a monumental task before him. To address these issues will require real leadership that encourages active VA outreach and transparency. We encourage General Shinseki to move quickly to add Iraq and Afghanistan Veterans to key positions in his senior staff.

President-elect Obama made veterans' issues a priority in his campaign, and Michelle Obama has called military families one of the issues she cares most about. We look forward to working closely with General Shinseki and the new Administration to ensure every veteran in this country gets the care and support they have earned."

Section 2. The President shall be commander in chief of the Army and Navy of the United States, and of the militia of the several states, when called into the actual service of the United States; he may require the opinion, in writing, of the principal officer in each of the executive departments, upon any subject relating to the duties of their respective offices, and he shall have power to grant reprieves and pardons for offenses against the United States, except in cases of impeachment.