Madoff Family Members Sued For $199 Million

Oct 5 2009 | 2:18am ET

The court-appointed trustee in the Bernard Madoff case made good on his threat Friday, suing four of the arch-fraudster’s family members for nearly $200 million.

Madoff’s  business was “operated as if it were the family piggy bank,” Irving Picard said in his $198.7 million lawsuit against Madoff’s brother, sons and niece. The trustee said the four Madoffs withdrew some $141 million in fraudulent proceeds of Madoff’s $65 billion Ponzi scheme from Bernard L. Madoff Investment Securities in the six years before his arrest in December, and at least $58 million over the last two years.

Madoff’s brother, Peter, his sons, Andrew and Mark, and Peter’s daughter, Shana, all worked at the Madoff firm, “yet the family members were completely derelict in these duties and responsibilities,” Picard alleged.

“As a result, they either failed to detect or failed to stop the fraud, thereby enabling and facilitating the Ponzi scheme,” he added. “Simply put, if the family members had been doing their jobs—honestly and faithfully—the Madoff Ponzi scheme might never have succeeded, or continued for so long.”

According to Picard, the four used their ill-gotten gains to pay for their personal business ventures and other personal expenses, including their homes, cars and boats, as well as to pay off their (presumably large) credit-card bills.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of