Judge seeks $170B in forfeitures from Madoff, who awaits sentence

Written by Janet

Prosecutors want Madoff to serve 150 years, so a U.S. District Court judge Friday entered a preliminary order calling on the convicted Ponzi schemer to forfeit more than $170 billion in assets, prosecutors announced.  His wife Ruth, will be allowed to keep $2.5 million in funds “in settlement of the claims she would have otherwise brought against the property.

Madoff, who pleaded guilty to 11 counts, including fraud, money laundering and perjury, is to be sentenced Monday. The forfeitures amount to all of his assets.  The forfeitures include millions of dollars in loans made to family members, employees and friends, all personal property, including paintings, jewelry and furniture, millions of dollars in investment and banking accounts and several pieces of property.

U.S. District Judge Denny Chin ordered the U.S. Marshals Service to sell a $7.5 million co-op apartment in New York, a $7 million property in Montauk, New York, and a $7.45 million property in Palm Beach, Florida, along with several cars and boats.

The purpose of asking for 150 years, was for Madoff to remain in prison the rest of his life.  His multi billion dollar Ponzi Scheme, is said to have defrauded thousands of investors under false pretenses. The scheme, which spanned decades, has generated a fraud loss of more than $13 billion.

Madoff promised his clients a high return with limited risk, but in reality early investors were paid with later investors — and nobody realized huge gains. Some of the victims of the scheme included individuals and nonprofit organizations.  He pled guilty on March 12 and has since been in jail at the Metropolitan Correctional Center in Manhattan.  But his attorneys think he should only serve 12 years in prison. 

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12 Comments

  1. newsdeskinternational

    10 more could be charged in Madoff scam

    A person familiar with the investigation into disgraced financier Bernard Madoff (MAY’-dawf) says at least 10 more people are likely to be charged by the time the probe is complete.

    they will face federal charges over the next few months. The person spoke on condition of anonymity because the investigation is ongoing.

    Madoff was sentenced Monday to 150 years in prison for a multibillion-dollar fraud that burned thousands of investors.

    The person familiar with the probe wouldn’t detail the likely charges against the others or say whether they would include Madoff’s relatives or former employees.

    The only other person charged in the case is Madoff’s longtime accountant, who was accused of failing to make basic auditing checks and was arrested in March.

  2. newsdeskinternational

    British Study Madoff Payments to Austrian Banker

    British authorities have started an investigation into millions of dollars of payments from the operations of the convicted money manager Bernard L. Madoff to companies linked to the Austrian banker Sonja Kohn, an Austrian official confirmed on Friday.

    The Serious Fraud Office had asked Austrian prosecutors in May for help in investigating payments made by Mr. Madoff’s London office for research reports by Bank Medici in Austria, which was majority-owned by Mrs. Kohn, who also served as its chairwoman.

    “We’re closely cooperating with the S.F.O. and the U.S. Justice Department in that case,” the official, Gerhard Jarosch, a senior public prosecutor in Austria, said Friday. A separate investigation by the Austrian prosecutor into whether Mrs. Kohn and Bank Medici were involved with Mr. Madoff is continuing, he said.

    Prosecutors are looking into whether Mr. Madoff paid more than $40 million to Mrs. Kohn in exchange for turning three Bank Medici funds into feeder funds for his business, The Wall Street Journal reported, citing affidavits filed by prosecutors in the United States and Britain. The Austrian daily Der Standard reported last week that Mrs. Kohn received about £7 million, or $11.5 million, for research reports for which prosecutors were unable to find receipts. Carolin Treichl, a spokeswoman for the former Bank Medici, said Mrs. Kohn was “shocked” by the accusations that she received personal payments from Mr. Madoff and rejects such assertions “vehemently.” Mrs. Kohn has not been charged with wrongdoing but Bank Medici surrendered its banking license in March.

    Clemens Trauttenberg, a lawyer for the former Bank Medici, rejected accusations that there were any unaccounted payments to Mrs. Kohn or the bank. He said the British regulator had not yet contacted him or his client but that they were ready to cooperate.

    “Research reports about certain market segments and other issues were supplied and there is nothing forbidden about it,” said Mr. Trauttenberg after consulting with Mrs. Kohn, who declined to comment personally. “We already presented more than 100,000 pages of documents to the U.S. Securities and Exchange Commission. Several allegations were proven untrue recently.”

    Bank Medici, of which Mrs. Kohn owned 75 percent and UniCredit’s Bank Austria held the rest, generated most of its fees through Madoff-linked investments in 2007 even though Mr. Madoff’s name did not appear in the bank’s annual report that year. Once the fraud was discovered, Bank Medici appeared among the top entries on Mr. Madoff’s victims list. The bank managed and distributed funds that invested about $3.2 billion with Mr. Madoff.

    Mr. Madoff was sentenced this week to 150 years in prison, the maximum for his crimes. Mrs. Kohn has repeatedly said that she is a victim of Mr. Madoff.

    Mrs. Kohn is now trying to rebuild her reputation in the Austrian banking industry. She renamed the bank 20.20 Medici, using the term with which optometrists describe perfect vision. Keeping the Medici name is a sign that Mrs. Kohn is not trying to “rid herself of what happened in the past,” Mr. Trauttenberg said. At her new venture, Mrs. Kohn plans to offer advisory and research services.

  3. newsdeskinternational

    Marketing Madoff’s mansions

    The victims of the convicted Ponzi schemer Bernard Madoff are hoping for a big take because they’ll share the proceeds, but whether the luxury properties will fetch as much as estimated is still an open question.

    http://money.cnn.com/2009/08/03/real_estate/Marketing_the_Madoff_Mansions/index.htm?postversion=2009080311

  4. newsdeskinternational

    A new book says that an investor who claims she was devastated by Bernard Madoff’s multibillion-dollar Ponzi scheme had a two-decade affair with the disgraced financier.

    The memoir, “Madoff’s Other Secret: Love, Money, Bernie, and Me,” was written by Sheryl Weinstein, whose relationship with Madoff spanned more than 20 years while both were married, said John Murphy, a spokesman for publisher St. Martin’s Press. It goes on sale Aug. 25.

    http://channels.isp.netscape.com/news/story.jsp?floc=ne-us-12-l7&idq=/ff/story/0001%2F20090815%2F0700232110.htm&sc=1110

  5. newsdeskinternational

    Bernie Madoff Reportedly Dying of Cancer

    Convicted Ponzi schemer Bernie Madoff is dying of cancer, sources told the New York Post.

    Madoff, who is serving 150 years at a North Carolina federal prison after pleading guilty to swindling more than $65 billion, has been telling fellow inmate he doesn’t have much longer to live.

    “He’s been taking about 20 pills a day for his cancer,” one inmate told the newspaper. “He talks about it all the time. He’s not doing very well.”

    Speculation has swirled as to why Madoff, 71, took sole responsibility for the scheme and rumors of his suffering from pancreatic cancer surfaced months before he arrived at the Butner, N.C., complex in June.

    Madoff’s attorney did not return messages yesterday but, when previously asked by the Post, would neither confirm nor deny his client has cancer. A lawyer for his wife, Ruth Madoff, also did not return messages.

  6. newsdeskinternational

    It seems someone in his camp has jumped the gun…trying to get him off? Maybe they read about the Lockerbie case and think the same will work for him…

    Madoff not diagnosed with cancer: Bureau of Prisons

    Wall Street swindler Bernard Madoff has not been diagnosed with cancer, the Federal Bureau of Prisons said on Monday, in response to a report that Madoff had told fellow prison inmates he was dying of the disease.

    http://www.reuters.com/article/newsOne/idUSTRE57N2Z320090824

  7. newsdeskinternational

    Inmates: Bernard Madoff in Prison Scuffle � and Wins

    so he got into a tussle with inmates and won at 70 years of age?

    Bernie “The Bruiser” Madoff got into a prison-yard tussle with a fellow inmate over — of all things — the stock market, eyewitnesses told The New York Post.

    And, by inmates’ accounts, the 71-year-old Ponzi schemer came out the winner.

    Madoff, serving 150 years at the Butner, N.C., federal prison, was heard last week getting into a heated debate over the state of the market with another senior-citizen jailbird.

    The shouting match got so heated that the inmate pushed Madoff, who shoved back harder with both hands, causing his attacker to stumble.

    As the attacker tried to stand up straight, Madoff hovered over him red-faced and glaring, eyewitnesses said.

    The stunned attacker went chicken and took off — allowing Madoff to collect some “cred” among his fellow prisoners.

    “I didn’t think Bernie had it in him. He got the best of him; he was really aggressive, and the other guy was in shock that he fought back,” an inmate said.

    The shoving match occurred near a ball field at the lockup in front of about 20 inmates during a rare time

    Prisoners interviewed by The Post said this was the first known physical altercation at the slammer for Madoff — who paid a consultant for a crash course in prison culture and survival tips before he was locked up.

  8. newsdeskinternational

    Bernie Madoff Associate Found Dead in Florida Pool

    Jeffry Picower, a philanthropist accused of profiting more than $7 billion from the investment schemes of his longtime friend Bernard Madoff, was found at the bottom of the pool at his oceanside mansion and died Sunday, police said. He was 67.

    http://www.foxnews.com/story/0,2933,569514,00.html

  9. newsdeskinternational

    And now for an update on selling of Bernie Madoff’s assets….

    http://www.foxnews.com/story/0,2933,575307,00.html

  10. newsdeskinternational

    Madoff gets respect in prison

    Bernard Madoff, perpetrator of the biggest securities fraud in U.S. history, is adjusting to life as Inmate 61727-054 in a federal prison in North Carolina, his lawyer says.

    “All things considered, he’s OK,” Ira Sorkin told The Wall Street Journal. “He still suffers deeply for what he did.”

    Some inmates said the very size of Madoff’s Ponzi scheme impresses his fellow prisoners at Butner Federal Correctional Complex. Madoff took in billions of dollars from investors, claiming to put it into securities that brought in steady 10 percent to 12 percent annual returns.

    “To every con artist, he is the godfather, the don,” one man told the Journal this week.

    Madoff, 71, was sentenced to 150 years in prison and can expect to die behind bars.

    Prison officials refuse to comment on the details of Madoff’s prison life and residents of Butner say guards have been warned they risk their jobs if they talk about him.

    Nancy Fineman, a lawyer representing investors in a suit against Madoff’s wife, Ruth, said she talked to Madoff during the summer. He told her when he first arrived at Butner inmates tried to get his signature in hopes of selling it on eBay.

  11. newsdeskinternational

    Madoff trustee sues dozens in Fairfield lawsuit

    The trustee overseeing the liquidation of Bernard Madoff’s financial advisory firm has sued 43 new defendants affiliated with a hedge fund firm that fed money to the now-imprisoned swindler.

    http://www.reuters.com/article/idUSTRE66K2S720100721?type=domesticNews

  12. newsdeskinternational

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