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.

The Wages of Sin: Ruth Madoff and Bernie's Money Trail

Last week I posted a piece on the Corporate Justice Blog about affinity fraud and the Bernie Madoff scandal. Well, the drama surrounding Bernie Madoff does not cease. A couple of days ago, Ruth Madoff, the wife of Bernie Madoff, was a major item in the news.

As it turns out, Irving Picard, theTrustee appointed to liquidate Bernie's business assets filed suit against Ruth Madoff to recapture and recoup upwards of $45 billion transferred to Ruth Madoff, or companies she controlled, for her own personal benefit. In his Bankruptcy Court filing, Mr. Picard detailed 111 alleged fraudulent transactions and conveyances to Ruth Madoff.

As part of his 150 year sentence, Bernie Madoff forfeited most of his personal assets. The government did not contest Ruth Madoff's claim to $2.5 million. Ruth Madoff continues to enjoy substantial advantage and a relatively lavish lifestyle compared to the individuals and charities that were defrauded by Bernie Madoff, her husband.

The sins of the father are often the sins of the son/daugther. Are the sins of the husband the sins of the wife? This remains to be seen. Will Ruth Madoff have to atone for Bernie's sins? We shall see. Will we ever sort out the Bernie Madoff money trail? We'll find out. I'll keep you posted.