Ruth Madoff cuts a deal: Let the outrage begin


While Madoff's victims are out billions, his wife Ruth Madoff will get to keep a nice chunk of his unjust winnings.

The Wall Street Journal (subscription required) reports that "Ruth Madoff, the wife of one of the most reviled swindlers in history, has agreed to give up her potential claim to more than $80 million worth of assets, keeping just $2.5 million in cash in an agreement reached with federal prosecutors."

Financial journalist Gary Weiss is having none of it:

Ruth Madoff should be reduced to the same state as her husband's (some might refer to them as her) victims, and not be allowed to keep a penny of the assets forfeited by the government. Her hubby's victims have been wiped out, and so should she.

Her lawyer says that she "unequivocally did not know of the misconduct and did not participate in it." And I have a bridge over the East River I can sell you.

The argument in favor of giving Mrs. Madoff $2.5 million in cash would seem to be this: It's easier than battling with her over the $80 million figure, leaving victims' money tied up in a legal battle consuming millions in fees every week. As distasteful as it is, giving that evil succubus $2.5 million might just be the best option for everyone involved, and that's why the prosecution agreed to it.

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