Liquidators Hunting Madoff's Millions

September 28. 2009

Thus far, $1.5 billion dollars has been recovered in the Bernard Madoff case. However, a duo of liquidators is still after Bernard Madoff's millions, in the fallout of the largest ponzi scheme in history.

The liquidators contend there are millions more in hidden assets, belonging to investors that needs to be reclaimed.

Ruth and Bernard Madoff

Madoff's family is breaking the law in keeping many millions in funds stolen from investors. This is referred to as the legal term "Fraudulent Transfers."

The Madoff family is sitting on at least $200,000,000. This money has been used to buy homes and live lavishly at defrauded investors' expense.

Ruth Madoff

Ironically, one of Madoff's sons has the unmitigated gall to claim the family is owed $90,000,000 from Madoff's company.

Madoff's brother, his sons and niece, put very little investment capital into the business, yet reaped hundreds of millions in returns.

The Madoff's Park Avenue apartment in New York

This should automatically qualify them for prison, as who makes that kind of return working at and investing in a business, later unmasked as a ponzi scheme, when they placed so little money into it to begin with.  

One of the liquidators' poignantly stated, "If you were those sons and you knew what you knew today, wouldn't you be embarrassed to keep that money. They should give it all back. If they don't give it all back, I think we have an obligation to go get it and take it all back." Indeed.

You need to remember who their dad is - Bernard Madoff. They don't have a conscience or they could not have done this in the first place.

The liquidators are also going after two Madoff investors believed to be in on the scheme, as they took out far more than they put into his company.

An investor named Mr. Picower took $5 billion out of the ponzi scheme and another referred to as Mr. Chase reaped $1 billion.

Under a "Claw Back" clause, the liquidator is entitled to seizing that money. However, there is still $18 billion unaccounted for, which the liquidators believe is hidden somewhere.

As for Madoff's wife, Ruth, who managed his business and personal accounts and spent investor money like it was water, she had to have been aware of the financial discrepancies.

Madoff's homes, boats and all his worldly possessions, down to his mattress, was seized by the federal government, with auctions underway. The liquidation is expected to fetch $50 million dollars.

Ruth Madoff was allowed to keep $2.5 million in stolen funds that came from fleecing investors. However, she has been sued, is currently paying out that money in legal fees and is now in bankruptcy.

She is required to check with the court, when spending anything above $100. In short, she is financially ruined, but her children and brother-in-law are not. However, the liquidators intend to change that, bankrupting them if necessary to get every penny back. 

Ponzi schemers and financial fraudsters beware, as this is your future as well.

Trustee Plans to Sue Madoff Family Members for $198 Million

Published: September 27, 2009 - Irving H. Picard, the court-appointed trustee hunting down any remaining spoils of Bernard L. Madoff’s giant Ponzi scheme, plans to sue Mr. Madoff’s two sons, his niece and his brother this week, seeking the return of $198 million....

Mr. Madoff’s sons Mark and Andrew, his brother Peter and niece Shana all were executives with his firm and should have known about the $65 billion fraud that went on for more than 20 years, Mr. Sheehan said.

“Whether or not they have a criminal problem we will pursue them as far as we can pursue them,” Mr. Picard. “And if that leads to bankrupting them, then that’s what will happen.”

Both Mark and Andrew, who have maintained their innocence, are trying to get $90 million they say is owed to them by the their father’s company...

http://www.nytimes.com