Alberto Vilar

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Alberto Vilar (b. 4 October 1940) is a Cuban-American investor and philanthropist, particularly known as a patron of opera. Vilar earned an economics degree from Washington and Jefferson College, an elite liberal arts college in Washington, PA. He then earned a master's degree in economics at Iona College in New Rochelle, New York.

In 1979, along with Gary Tanaka, he founded Amerindo Investment Advisers, an investment advisory firm based in San Francisco and New York, with offices in London. In 1981, Vilar made his first $1 million dollars. Amerindo's main investment activities were in technology funds, and that sector was the most severely affected by the stock market crash of 2000.

Contents 1 Vilar’s donations to opera companies and other organizations 2 Fraud Charges in 2005 3 Consequences of his failures to pay promised donations 4 References 5 External links

[edit] Vilar’s donations to opera companies and other organizations

Vilar is globally known as a generous donor to opera companies, performing arts organizations, and educational institutions in several parts of the world. Norman Lebrecht ^[1] states that, as of August 2002, his total contributions, many in the form of pledges, have been $250 million. Most of these pledges were never paid. By 2000 Vilar was claiming to be "the largest supporter of classical music, opera, and ballet in the world" ^[2]. In 2002, the Americans for the Arts organization gave him their National Arts Award, for “Corporate Citizenship in the Arts”.

Among the beneficiaries of his generosity have been:

• Royal Opera House, Covent Garden in central London, where the Floral Hall, one of the major foyers of the redeveloped house, was named the “Vilar Floral Hall” in recognition of a 1999 pledge of £10 million.

Subsequently he pledged money for the “Young Artists Programme”, several opera production sponsorships, and for the installation of seat back titles in the main auditorium. .

• The Salzburg Music Festival received its largest donation in its 81-year history from Vilar. He in turn received a full-page color photo of himself in every program book.
• Metropolitan Opera received his huge support which is reported to have surpassed even that of Sybil Harrington, whose name adorns the main auditorium. His total pledges to the Met are thought to be $45 million, but, with $12 million actually given to the company, he remains as its third largest donor.
• The Kirov Opera located in the Mariinsky Theatre in Saint Petersburg, Russia, under Valery Gergiev, the charismatic conductor and artistic director, has been another major beneficiary of Vilar’s support, which is said to have been around $14 million and was focused primarily on supporting the summer White Nights festival.
• Washington DC’s Kennedy Center, under its President, Michael Kaiser who had developed a relationship with Vilar when the former was at the Royal Opera House, received donations to create an arts-management program, the Vilar Institute for Arts Management plus a program that brings the Kirov Opera to the Center on an annual basis. In 2001 Vilar pledged $50 million toward the Center's activities.

In addition, Vilar was publicly applauded for installing his Vilar Titles in the Opera House of the Center. This is the same libretto-translating system found on the seat backs of the Met and many other opera houses worldwide by the Figaro Systems company based in Santa Fe, New Mexico. Vilar is a major shareholder of that company.

• The Washington Opera and the Los Angeles Opera have both received support from Vilar due to his connection to Plácido Domingo, who is General and Artistic Director of both companies. $10 million was pledged to each company.
• Maazel/Vilar Conductors' Competition.
• New York University has the Alberto Vilar Global Fellows in the Performing Arts program, which began in 2002 with a $23.4 million donation to attract and bring young performing artists to study in New York for two years. It has been described by NYU as a Rhodes Scholars-style program .
• Beaver Creek, Colorado has the Vilar Center for the Arts and the Ford Amphitheater/Vilar Pavilion in Vail, Colorado.
• Washington & Jefferson College built a new technology building, which was to be named "The Vilar Technology Center," based on a multi-million dollar pledge by Vilar. The funds never materialized, and the building remains half-finished and unnamed. Vilar's failure to meet his pledge was a contributing factor to the departure of W&J College President Brian C. Mitchell in 2004.

As noted by Stewart, at some point in 2002, Vilar was hospitalized for a series of operations on his back, and he claims to have nearly died as the result of complications: "they were ready to give me the last rites" ^[3]. There was speculation that he missed some planned donations as the result of his illness, as well as a severe decline in his personal fortune due to the stock market crash in 2000.

However, it is documented that he still continued to make pledges even as his personal and his company's fortunes continued to plunge. Among the pledges were $5 million for money for voice loss research after meeting Julie Andrews and $30 million to a Berlin opera company: "Asking Alberto for money was like offering an alcoholic a drink" ^[4].

[edit] Fraud Charges in 2005

Alberto Vilar and Gary Tanaka were arrested on May 26, 2005, on charges of securities fraud. [1][2] The government claims that the two appropriated as much as $5 million of an Amerindo client's money for personal use; it is alleged that Vilar used the money to pay for some home repairs and to make good on previously-promised charitable contributions. It is also alleged that Tanaka used money to purchase thoroughbred race horses. The SEC has also filed a civil suit (see [3]).

According to Stewart’s article in The New Yorker, an extensive analysis of Vilar’s rise and fall, “Vilar maintains that when he was arrested he was on the brink of a financial comeback. "Everything I predicted about the Internet has come true.... I'm ready to go back to work and make money." Stewart continues that, “if convicted, Vilar and Tanaka face fines of more than ten million dollars and prison terms of up to a hundred and fifty-five years. But Vilar says, "We'll sort this out. I'll get beyond this. I will always try to help others.... I still love opera and classical music.... The Met is not going to get my money, but it will not kill my love of music." As of early 2006, both Vilar and Tanaka are limited to virtual house arrest in their respective New York apartments.

The charges did not allege wrongdoing at Amerindo's mutual funds, but Morningstar, a fund analysis company, advised investors to withdraw their money in any case, because the funds had been performing very poorly. In fact, as with many other funds investing in internet companies, investors had already been pulling out for some time, reducing assets and causing expense ratios to increase. Amerindo's board decided to merge the fund with Munder Capital Management's fund, Munder NetNet, later renamed Munder Internet.

The trial of Vilar and Tanaka had been scheduled to begin in April 2006, but no further information is available.

[edit] Consequences of his failures to pay promised donations

Many of the organizations to which Vilar had pledged donations gradually began to remove his name from parts of their institutions where it was placed prominently.

In July 2005 the Royal Opera House announced that, following Vilar’s failure to maintain the agreed payment schedule, his name would be removed from the building. Later his name was removed from the young artists program when a new donor stepped forward. However, since his total donation to the ROH since 1999 is approximately £4.4million, he remains listed on the Donor and Benefactors Board. [4]. Vilar's name, which appeared on the “Vilar Grand Tier” at the Metropolitan Opera, has since been removed. The Washington Opera’s young artists program has also been renamed (after additional support was found) as the “Domingo-Cafritz Young Artist Program”, and the Kennedy Center’s “Arts Management Fellowship” program has similarly dropped the Vilar name.

[edit] References

1. ^ Norman Lebrecht, La Scena Musicale, see below
2. ^ Quoted from an interview in The Times (London) by James Stewart
3. ^ In James Stewart, "The Opera Lover"
4. ^ A close friend quoted in James Stewart, "The Opera Lover"

Stewart, James B., “The Opera Lover: How Alberto Vilar's Passion for Philantropy Landed Him in Jail”, The New Yorker, 13th & 20th February 2006

[edit] External links

• Norman Lebrecht, "A New Future for Opera?", La Scena Musicale, 23 May 2001, an account of Vilar’s philanthropy
• Norman Lebrecht, "The Benefactor and His Bride", La Scena Musicale, 14 August 2002, an account of Vilar’s donations and personal life
• Steve Hamm, "This Opera Lover Is Singing Again", Business Week, 5 July 2004 article on his “comeback”
• "Once a billionaire, now a prisoner", 30 May 2005, CNN.com article
• "Alberto Vilar Spends More Time in Jail While His Amerindo Investment Advisers Teeters on the Brink", an account of the charges against Vilar
• Russel Kinnel and Dieter Owen Bardy, "Amerindo Founders Jailed on Fraud Charges", 3 June 2005, a Morningstar account of the situation
• Vilar Center for the Arts at Beaver Creek website