Madoff Sons Want New Allegations Junked

Aug 14 2014 | 6:20am ET

Bernard Madoff’s son and the estate of his late son are tired of dealing with the court-appointed receiver seeking to recover assets for their father’s victims.

Lawyers for Andrew Madoff and the Mark Madoff estate have asked a federal bankruptcy court to disallow Irving Picard’s third amended complaint against their clients, arguing that it’s too late for the receiver to make new claims against them, five years after his lawsuit was first filed.

Mining the testimony of former Madoff finance chief Frank DiPascali in a recent trial of five lieutenants of the arch-Ponzi schemer, Picard alleges that Andrew and Mark, who committed suicide in 2010, knew about their father’s fraud and deleted e-mails that betrayed that knowledge. He also alleges that the two lined their pockets with tens of millions of dollars diverted from their father’s firm, and helped cover up the fraud by deleting, dummying or hiding e-mails during a Securities and Exchange Commission audit in 2005.

The Madoff sons’ lawyers say that their clients were already cleared by a British court last year of foreknowledge of the $65 billion scheme, with a London judge declaring their “honesty and integrity… vindicated.”

Picard’s latest suit unfairly seeks “another bite at the apple,” Martin Flumenbaum said. “The trustee was dealt a resounding defeat. The bottom line is that it is simply too late for the trustee to yet again reinvent his complaint.”

Picard’s spokeswoman, Amanda Remus, dismiss that accusation, saying “the actions in the United States are completely different,” relating “to a history of fictitious trading and sham loans between the Madoff brothers” and their father’s firm. 

Picard is seeking at least $35.3 million from Andrew Madoff, the Mark Madoff estate and from Mark’s widow, Stephanie Mack, and as much as $153.3 million.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...