It was the biggest financial fraud in US history with losses as high as $65 billion. And now a trustee is alleging that the sons of Bernard Madoff hid their roles in that fraud and improperly gained millions of dollars through sham loans. And he wants the money back.
Above right: Bernard Madoff
Madoff’s Sons Allegedly Used Fayther's Company Like Personal Piggy Bank, Hid Their Roles In Biggest Ponzi Scheme In History
Shmarya Rosenberg • FailedMessiah.com
The sons of the biggest Ponzi schemer in US history, Bernard Madoff, allegedly diverted tens of millions of dollars by creating fraudulent accounts and using sham loans to buy expensive Manhattan real estate, Irving Picard, a court-appointed trustee, said on Tuesday in an amended lawsuit against Madoff’s son Andrew and the estate of his older brother Mark, Reuters reported.
Mark Madoff committed suicide in December 2010.
Each Madoff brother owes their parents millions of dollars. Mark’s estate owes $22 million, according to some reports. Andrew owes about half that. And each brother also allegedly took nearly $20 million from the Bernard L. Madoff Investment Securities LLC.
Picard is tasked with liquidating Bernard L. Madoff Investment Securities LLC. His amended lawsuit against the Madoffs cites testimony from Frank DiPascali, Bernard L. Madoff Investment Securities’s former CFO who is cooperating with federal prosecutors. The Madoff brothers also allegedly deleted emails that tied them to their father's Ponzi scheme.
Picard wants Andrew Madoff, the estate of Mark Madoff, and Mark's widow Stephanie Mack to repay $153.3 million.
Madoff’s fraud cost investors as much as $65 billion, although some estimates put the actual real money loss lower, at closer to $17 billion.
After pleading guilty on March 12, 2009, Madoff was sentenced to 150 years imprisonment and forfeiture of $17.179 billion.
Madoff fraud cost many investors, a number of whom are Jewish, their life savings.
Madoff, himself Jewish but not Orthodox, sat on Yeshiva University's investment committee and had close ties to many other Jewish organizations many of which, like Hadassah, were almost destroyed when the scheme collapsed.
Along with other bad investment practices, the Madoff scheme also crippled YU.