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Madoff family to be sued for $198 million

Posted Sep 28th 2009 10:00AM by Tom JohansmeyerTom Johansmeyer RSS Feed
Filed under: Scandals

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Even with the ringleader in jail, the pursuit of Bernie Madoff doesn't seem to be finished. Sunday night, the trustee who's winding down the Madoff company said on 60 Minutes that Madoff's two sons (Mark and Andrew), brother (Peter) and niece (Shana) will be slapped with a $198 million suit. They are alleged to have known about the Ponzi scheme, according to the trustee, Irving Picard and his chief counsel, David Sheehan.

Sheehan and Picard are also working under the assumption that there is still some money hidden, quite a lot of it, in fact. Picard told the show, "We'd assume it's millions and millions of dollars." Yet, this probably wouldn't help with the task in front of them.

Sheehan says of the $64.8 billion fraud that an estimated $36 million was put into the scheme and "[a]bout $18 (billion) of it went out before the collapse. And $18 (billion) of it is just missing. And that $18 billion is what we're trying to get back." They have the task of making investors whole – to the extent possible.

The sons, they continue, pulled $35 million from Madoff accounts, despite having made little or no investment. The suits against these family members follow litigation against Madoff's wife Ruth and several feeder funds. Thirteen have been filed so far, with the hopes of recovering $15 billion. So far, 10% of that has been recovered.

Tags: bernard madoff, bernie madoff, featured, fraud, fraud investigation, inthenews, lawsuit, litigation, madoff, madoff scandal, madoff securities, ponzi, ponzi scheme, ruth madoff

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Last updated: November 23, 2009: 05:43 AM

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