Saturday, October 3, 2009

Bernie Madoff's Family Members Sued For $199 Million

Yesterday, Irving Picard, the court-appointed trustee in the Bernie Madoff bankruptcy case, filed a lawsuit to recover $199 million from four (4) members of Bernie Madoff’s family for investors defrauded in Bernie’s Ponzi scheme. Picard sued Peter Madoff, Bernie’s younger brother; Shana, Bernie’s niece, and Peter’s daughter; and Bernie’s two sons Mark and Andrew Madoff. Peter Madoff was the Chief Compliance Officer at Madoff Securities. Shana was the compliance director. Bernie’s sons Mark and Andrew were co-directors of trading at Madoff Securities. Picard alleges in his Complaint that these four (4) individuals were “completely derelict” in carrying out their duties at Madoff Securities. As a result of their dereliction of duty, they failed to detect and stop Bernie Madoff’s fraudulent Ponzi scheme.

The gist of Picard’s Complaint is that these four (4) members of Bernie Madoff’s family lavished themselves in luxury and financed business ventures from ill-gotten profits stemming from Bernie’s Ponzi scheme. In essence, the Madoff family members used Madoff Securities was a personal piggy bank. Recall, I wrote about a similar lawsuit that Picard filed several weeks ago against Ruth Madoff to recover $44 million. Undoubtedly, the net is beginning to surround and ensnare Bernie Madoff’s family and inner-circle. We will have to see how all of this plays itself out. I’ll keep you posted.

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