Madoff family to be sued for $198 million

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

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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Reader Comments (Page 1 of 1)

9-28-2009 @ 9:17AM

almarafolk said...

Put all of their thieving asses in jail and keep them there!!!

9-28-2009 @ 9:20AM

treia said...

This family got nerves of steel.Hopefully they will all end up in jail.

9-28-2009 @ 9:22AM

vinceusa1 said...

LOVE IT......... LOVE IT.......... LOVE IT......... Make them live on the street!

9-28-2009 @ 10:16AM

elllieswenson said...

The prosecutors need to go after all the Madoffs, because they all profited from the Ponzi scheme. They play innocent, but I believe they knew what was going on all the time. They should be left with nothing, just as they left their investors with nothing.

9-28-2009 @ 11:45AM

phil said...

i think it funny that these people lost money

9-28-2009 @ 12:32PM

fluffy economy said...

people madoff is innocent! this didnt happen overnight for over 20+ years all these so called victims cashed their checks and said it was all good! now wall street eats shit and everybody looses!....except for these people right?..they were not suppose to loose like the rest of us? they are all supposed to be super rich right? ladies and gentlemen these people arent victims they are delux sukers!!!!!

9-28-2009 @ 12:36PM

DoIKnowYou?ThenSTFU said...

Maybe, but remember that some of "these people [that] lost money" did donate to charitable and humanitarian organizations. So when a tornado hits your house and you end up on the street without clothes or food because your local Red Cross lacks funding, now that would be funny ahaha!

9-28-2009 @ 12:57PM

davey crocket said...

No we all loose when these people are no longer spending their Pozi Scheme money in their local communities. And were did the money go...I wonder....obvously not here in the USA, that is why all the banks went upside down in one week last year...then they get bailed out and paid twice? Only in America. God Bless...

9-28-2009 @ 1:33PM

mtgrates4u said...

I hope that prick is enjoying his holiday behind bars!

9-28-2009 @ 2:00PM

Wilmadikfit said...

I hope that prick enjoys his holiday behind bars! Good point Fluffy you are a real Plato!!!

9-28-2009 @ 1:53PM

lda 450 said...

Picard and Sheehan are making MILLIONS off of this disaster and ripping off Madoff's victims with their outrageous fees. Nothing has changed. The money should go to the victims not these arrogant, well-connected scum bags....

9-28-2009 @ 1:54PM

lda 450 said...

Picard and Sheehan are making MILLIONS off of this disaster and
ripping off Madoff's victims with their outrageous fees. Nothing has
changed. The money should go to the victims not these arrogant,
well-connected scum bags....

9-28-2009 @ 2:56PM

fluffy economy said...

these people arent victims! they are just a bunch of donald chumps! lmfao!!!hahaha....

9-28-2009 @ 3:22PM

al coholic said...

What do you suppose the chances are that Madoff kids actually didn't know what was going on?

9-28-2009 @ 3:35PM

PinkTaters said...

geez, and all I have is 6 bucks in my wallet and I work 48 hours a week. I hope those ungrateful bastards burn.

9-28-2009 @ 4:25PM

retroharvey65 said...

I astounds me as to how moral-less, money-hungry, greedy,self-indulgent and arrogant some people can be and still deny the obvious! Where are these people's souls? Don't they realize that you will never escape this sort of trap when you get caught, let alone when you leave this world. Get a hold of yourselves and admit what you've done is wrong!