Irving Picard, the court appointed trustee liquidating Bernard Madoff‘s business, is suing Madoff family members for $198.7 million for using family finance business like a “piggy bank“. The money will be distributed among the cheated investors. 

Madoff's relatives sued for $199 million

Among the family members sued are – Madoff’s brother, Peter, who was the investment securities firm’s chief compliance officer; two sons, Andrew and Mark, who served as co-directors of trading; and niece, Shana, who was the compliance director.


Bernard Madoff is probably the biggest fraudster of current times. He ran a ponzi scheme where the early investors were being paid by new clients coming in. The exact amount in the scam has not yet been ascertained but it is supposed to run hundreds of billions of dollars worth of global investments.


Responses by the accused’s lawyers –


In response to the broadcast, John R. Wing, a lawyer representing Peter Madoff, denied allegations that his client was in on the scam.

I can advise you that Peter Madoff’s wife and daughter are among the many victims of Bernard Madoff’s alleged Ponzi scheme, having lost millions of dollars that were invested with Peter’s brother,” said Wing in a written statement. “Any suggestion that Peter Madoff knew that his brother was engaged in this Ponzi scheme is absurd.”

Martin Flumenbaum, a lawyer representing Mark and Andrew Madoff, said in a statement following the show that he and his clients “strongly disagree with the trustee’s baseless claims.”

Mark and Andrew Madoff had no prior knowledge of Bernard Madoff’s crimes and contacted the U.S. Department of Justice and the SEC immediately after their father told them he had defrauded his investment advisory clients,” said Flumenbaum. “By immediately turning him in, the brothers saved the victims of the fraud more than $170 million that their father was about to distribute.”

He also said the Mark and Andrew Madoff “suffered substantial economic losses as a result of their father’s crimes” and that they “continue to cooperate fully with the authorities in their ongoing investigations.”



Some number from Reuters

 $170 billion 
Amount U.S. prosecutors Marc Litt and Lisa Baroni said flowed through the principal Madoff account over
decades. Madoff consented to a forfeiture order of that amount.
 $64.8 billion 
Amount U.S. prosecutors, in filing criminal charges in March, said was recorded in the firm's customer
accounts as of November 2008, even though no actual trades in securities were made.
 $50 billion 
Bernard Madoff told his sons on Dec. 10, 2008, that he had been running a $50 billion Ponzi scheme in
which early investors were paid with money from new clients.
 $36 billion
What investigators believe was the "real money" that went into the whole scheme: $18 billion moved out
before the collapse and $18 billion is missing, according to David Sheehan, chief counsel for trustee Irving Picard.
 $15 billion
Total sought by Picard so far in lawsuits to recover money for thousands of defrauded former customers of
the Madoff firm.
 $13 billion
Madoff's lawyer, Ira Lee Sorkin, argued at the June 29 sentencing that the loss would be less than $13
billion when Picard had recovered assets.
 $1.5 billion
Amount recovered so far by Picard working under the auspices of the Securities Investor Protection Corp.
 $465 million
Amount of SIPC coverage provided as of Sept. 29 for 1,347 approved claims by former Madoff customers.
 $243 million
Total trustee seeks from Madoff family, including wife Ruth, brother Peter, sons Mark and Andrew and
niece Shana that was paid out, loaned or transferred to them.
 $80 million
Amount Ruth Madoff, the swindler's wife of 45 years, agreed to transfer to the government for the benefit of
fraud victims, who came from all walks of life and included charities.

$2.5 million
Ruth Madoff was allowed to keep this amount in cash but she is being sued by the trustee for $44.8 million.


Please enter your comment!
Please enter your name here