Consider it cruel and unjust punishment, but Irving Picard had no way to avoid going after the youngest of the Madoff clan - as the Madoff trustee sued 5 grandchildren seeking to recover funds for Ponzi victims. Bernie Madoff's family members, including brother Peter and sons Mark and Andrew, were targeted by Mr. Picard in previous lawsuits.  Two of the lawsuits filed on Wednesday were the first to name his grandchildren.

    U.S. Lawsuits.   In one, Mr. Picard is seeking $248,000 from son Andrew Madoff and his wife, Deborah, who filed for divorce around the time of Bernie's arrest in December 2008, and their minor children - identified as A.M. and E.M. according to the lawsuit. The divorce hasn't been finalized.  About $80,000 each was allegedly transferred to Deborah, A.M. and E.M. from a bank account of Bernie and Ruth (his wife) Madoff.  Picard is seeking the money in conjunction with Alan Nisselson, the trustee overseeing Bernie and Ruth's personal bankruptcy.

In a second lawsuit, Mr. Picard and Mr. Nisselson are seeking $274,000 allegedly transferred by Bernie and Ruth to son Mark Madoff's children and his current and former wives.  That suit names Mark, his wife, Stephanie Morgan, and their minor child - identified as A.V.M.;  and Susan Elkin, Mark's ex-wife, their son Daniel Madoff and daughter - identified as K.M.

Late Wednesday, Mr. Picard and Mr. Nisselson also sued the Mark and Stephanie Madoff Foundation for $2 million it allegedly received from Bernie and Ruth's bank account in December 2007.  And, in yet another lawsuit, the Deborah and Andrew Madoff Foundation was sued for $2 million that Bernie allegedly wired to the organization from a Lehman Brothers account.

    London Lawsuit.   Peter, Mark and Andrew Madoff were also named Wednesday in the $80 million lawsuit filed in London against them and other former directors of Madoff Securities International Ltd.  The suit was filed in the United Kingdom's High Court of Justice Commercial Court by Mr. Picard and Stephen J. Akers, a joint liquidator of the London business, Mr. Picard said. Sonja Kohn, an Austrian banker who worked extensively with Mr. Madoff in Europe, was named as well. [See today's accompanying story of the $19.6 billion lawsuit.]

This lawsuit accuses directors and officers of violating their duties to the company by making fraudulent payments, including some that benefited Bernie and his family.  It's alleged that the money was used to pay for among other things, a yacht, a home in the south of France and a luxury car.  "The directors had duties, among others, to be honest in recording the purposes and activities of the business," Mr. Akers said in a statement.  Instead, he adds, they allegedly signed off on false documents and misrepresented the true nature of transactions. [WSJournal, 12/8]