Trustee Picard sues Madoff family for $198.7 mln
By Wallace Witkowski, MarketWatch.com
Irving Picard, the trustee charged to liquidate Bernard L. Madoff Investment Securities LLC, on Friday sued four members of disgraced financier Bernie Madoff’s family, seeking to recapture at least $198.7 million for the benefit of defrauded investors. Named in the lawsuit are Madoff’s brother, Peter Madoff; Madoff’s two sons, Andrew and Mark; and Madoff’s niece, Shana Madoff. Picard alleges that the family members’ “management responsibilities extended through trading operations, customer relationships and legal and regulatory compliance, yet they were completely derelict in these duties and responsibilities.” The trustee claims that this enabled and facilitated Bernie Madoff’s multibillion-dollar Ponzi scheme. Picard also said that each family defendant took “huge sums of money” out of the firm “to fund personal business ventures and personal expenses such as homes, cars and boats.”
Suit: Madoff Family Got Ponzi Funds Article
By AMIR EFRATI, The Wall Street Journal (5/6/09)
Bernard Madoff used the fruits of his multibillion-dollar Ponzi scheme to lend millions to his brother and son, support his relatives’ business ventures and pay corporate card bills of his daughter in law, sister in law and captain of his boat, according to a court filing Tuesday.
Federal prosecutors previously said that Mr. Madoff used funds from his firm to benefit family members, and they have said they intend to try seizing millions of dollars of assets from Mr. Madoff’s wife, Ruth, and as well as $32 million of loans Mr. Madoff made to his sons, Andrew and Mark, who worked at the Madoff firm.
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