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Madoff Trustee Ups Suit To $226.4 Million

November 8, 2011
The trustee for Bernie Madoff's victim's has increased the size of his lawsuit against family members of the imprisoned Ponzi schemer to $226.4mn. Irving Picard, the trustee, said in an amended complaint the Madoffs were "completely derelict" in overseeing operations at Bernard L. Madoff Investment Securities LLC. He also said the Madoffs treated the firm like a "family piggy bank," withdrawing huge sums to fund other businesses as well as personal expenses such as vacation homes and boats. Picard first sued the Madoffs in October 2009 for $198.7mn. Most of the additional sum reflects salaries and bonuses that the trustee said were paid between 1993 and 2000. The defendants are Bernard Madoff's brother Peter, who was the firm's chief compliance officer; son Andrew, who was co-director of trading; the estate of son Mark, who was also co-director of trading; and niece Shana, a compliance officer. Mark Madoff committed suicide in December 2010. None of his family members has been charged with criminal wrongdoing. Picard is now seeking $77mn from Peter Madoff, $71.9mn from Mark Madoff's estate, $64.7mn from Andrew Madoff and $12.7mn from Shana Madoff. In September, U.S. Bankruptcy Judge Burton Lifland in Manhattan allowed Picard to pursue most of his claims against the Madoffs, and to file the amended complaint. Bernard Madoff's wife Ruth was sued by Picard for $44.8mn in July 2009, the month after she forfeited most of her assets in a settlement with federal prosecutors. She has denied knowing about her husband's crime while it was taking place. Picard has filed roughly 1,050 lawsuits on behalf of former Madoff customers who he has said have $17.3bn of valid claims. Bernard Madoff, 73, is serving a 150-year prison term. [Reuters, 11/8/11]