Yeshiva University lost about $110-million in investments connected with the Bernard L. Madoff scandal, a spokesman told Bloomberg News today, and a second trustee whose money-management firm had ties with Mr. Madoff’s securities business has stepped down.

Mr. Madoff was arrested last week and accused of defrauding investors of $50-billion in what has been called “a giant Ponzi scheme.” He resigned as a member of Yeshiva’s Board of Trustees and chairman of its business school after his arrest.

Most of Yeshiva’s losses were invested through hedge funds controlled by J. Ezra Merkin, who was a Yeshiva trustee and chairman of the university’s investment committee, the spokesman, Bill Anderson, told Bloomberg. Mr. Merkin resigned from both positions on Friday, the spokesman said.

Mr. Merkin is chairman of the lender GMAC Financial Services, but the investment losses are related to a money-management firm that he also runs, Gabriel Partners. In a letter to clients last week, Mr. Merkin revealed that one of Gabriel’s funds, Ascot Partners LP, had invested substantially all of its assets with Mr. Madoff and had suffered “major losses,” according to reports in The Wall Street Journal and other newspapers.

The New York Law School, which was one of those clients, sued Mr. Merkin and Ascot Partners today, along with the fund’s auditor, the Associated Press reported. The school said the $3-million it had invested with the fund was now worthless because of the “wrongful conduct” of the defendants. A lawyer for Mr. Merkin said that Mr. Merkin himself was a victim “of the massive crime confessed by Bernard L. Madoff” and that he would vigorously defend the lawsuit. —Charles Huckabee