On December 11, 2010, two years after Bernie Madoff's arrest and hours before Mark Madoff tragically took his own life, the WSJournal ran accounts of how several persons from Bernie's inner-world are faring in light of "the fraud of the century" - including those of Peter and Shana, who both worked in Madoff's broker-dealer. 

    Peter Madoff, Bernie's 65-year-old brother, and former CCO at the firm, is not working.  He spends most of his time in the New York area between a home in Old Westbury, Long Island, and a Park Avenue apartment in Manhattan - according to a person familiar with the matter.  Most of his assets are frozen pending the outcome of litigation.

Peter Madoff's attorney said in a January court filing as part of a civil lawsuit in New Jersey that he is under criminal investigation.  In a deposition for the suit, filed by the Lautenberg Foundation and members of the family of Sen. Frank Lautenberg (D, NJ) for investment losses, Peter Madoff cited his Fifth Amendment right against self-incrimination more than 250 times. 

Peter Madoff's lawyer, Charles Spada, said in an email:  "Peter Madoff had no knowledge of Bernard Madoff's Ponzi scheme and for the past two years has suffered enormous, irreparable harm from the consequences of his brother's fraudulent conduct."  He added: "Peter's wife lost millions of dollars that had been invested with his brother and any suggestion that Peter was aware of his brother's fraud is absurd."

    Shana Madoff, Peter's daughter, was a compliance lawyer at the Madoff firm.  She lives with her husband and two children in a lower Manhattan apartment and isn't working either, though "she's doing pretty well, she's adjusting to a different life, and being a stay-at-home mom," according to a person familiar with her situation.  Shana met her future husband while he conducted an SEC examination of the Madoff firm. 

With her father and others, Ms. Madoff, 40, is fighting a suit filed a year ago by Irving Picard seeking about $200 million in what he said were ill-gotten gains.  Both Shana Madoff and her father Peter were accused of being derelict in their compliance duties.  Ms. Madoff's lawyer, Mark W. Smith, had previously said his client had done nothing wrong and had been unaware of the fraud.   [WSJournal, 12/11, "Life After Madoff's 'Big Lie' "]