Bernie Madoff’s Family Members, Employees Sued For $69 Million

November 28, 2010

(ChattahBox US News)— Convicted Ponzi schemer Bernie Madoff may be locked away in prison for the rest of his natural life, but many of his victims are still seeking to be made whole again. Last year, Irving Picard, the trustee charged with winding down Madoff’s investment firm vowed to drive Madoff family members into bankruptcy, if necessary, to provide compensation to the victims of Bernie’s Madoff’s massive swindle. “Whether or not they have a criminal problem we will pursue them as far as we can pursue them. And if that leads to bankrupting them—then that’s what will happen,” Picard said. True to his word, Picard has filed a fresh batch of “clawback” lawsuits against Bernie Madoff’s wife Ruth and Marion Madoff, the wife of Bernie’s brother Peter.

A number of investors and former employees were also sued for fraud. A total of 40 lawsuits were filed on Friday to recover $69 Million in ill-gotten gains.

The New York Times writes:

“Irving H. Picard, appointed trustee by a federal bankruptcy court, filed 40 lawsuits seeking $69 million against people who he said had invested with Mr. Madoff and withdrawn more money than they contributed. The filings are the latest in a series of “clawback suits” filed by Mr. Picard, a New York lawyer, attempting to obtain as much as $17.5 billion total for victims of the largest Ponzi scheme in American history.” [...]

“Among those sued were Mr. Madoff’s wife, Ruth, the statement said. Also named in a complaint was Marion Madoff, the wife of Mr. Madoff’s brother Peter, who Mr. Picard said received $14.1 million in customer funds that should be returned. Mr. Picard already sued Peter Madoff in October 2009.”

During a jailhouse interview last year, Bernie Madoff bragged about carrying on one of the biggest Ponzi schemes in history right under the noses of SEC regulators. He even called one  SEC examiner an idiot.


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