Madoff Seeks To Keep NYC Penthouse, $62M In Assets

NEW YORK — Bernard Madoff is seeking to keep a $7 million Manhattan penthouse and an additional $62 million in assets, saying they are unrelated to the fraud that authorities say cost victims more than $50 billion. In court papers filed Monday in U.S. District Court in Manhattan, Madoff and his lawyer claim the apartment, $45 million in municipal bonds and $17 million more in a separate account all belong to Madoff's wife, Ruth.

The bonds in an account held by Ruth Madoff at COHMAD Securities Corp. and about $17 million held by her in a Wachovia Bank account "are unrelated to the alleged Madoff fraud and only Ruth Madoff has a beneficial interest in these assets," Bernard Madoff and lawyer Ira Sorkin said, according to the papers.

Sorkin declined to comment Monday.

A court-appointed trustee overseeing the liquidation of Madoff's assets has said the apartment and other property used to secure bail was off limits for now. But if there's a conviction, those assets and possibly property of Madoff "insiders" could be seized to help pay claims by alleged victims.

"We are looking at every member of the Madoff family," David Sheen, an attorney representing the trustee, said recently regarding the personal property.

The information was contained in an order of consent asking a judge to grant the federal government authority to seek forfeiture of assets involved in any fraud. It was filed in a case brought by the SEC against Madoff.

Trustee Irving H. Picard has said that nearly $950 million in cash and securities has been recovered for investors so far.

The 70-year-old former Nasdaq chairman has been confined to the Manhattan apartment, purchased in 1984, under house arrest since early December.

He was arrested and charged with securities fraud after authorities said in court papers that he confessed to his sons that he had carried out a giant Ponzi scheme for years, using new money from investors to pay off early investors while bogus statements claimed consistent investment gains.

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Associated Press writer Tom Hays contributed to this report.

Comments

[AKaurora]

04:29 PM on 03/05/2009

I believe that the Madoff clan was involved in this egregious rip-off. All should lose their assets. Even so, this will be a small "drop in the bucket" of what is owed to all of their victims. I have no vested interest in the outcome of Madoff; however, I do have a strong sense of ethics and judicial karma. Until the "rich and famous" pay for their crimes with loss of all material wealth, prestige, and hard prison time as the standard outcome to illegal behavior, the Justice system will remain unfair. Madoff is no different than a street thug and deserves a similar outcome: Attica.

[americanrevolution]

07:39 PM on 03/04/2009

WHAT BALLS!!!!

[LynnW49]

07:34 PM on 03/04/2009

The law takes away a racketeer's assets. Madoff is a racketeer. No way he should keep anything but a cheap suit. The RICO act is broadly applied to patterns of fraud, racketeering, money laundering, etc. I wish they'd apply it here.

[Fremon]

07:18 PM on 03/04/2009

If the wealth he wants to keep is unrelated to his business, how did he make this money? If he hasn't made any trades, and only had a ponzi scheme, all these years why did he put this apartment and assets in his wife's name if not to shield him if he was uncovered. If the wife didn't know he was doing this why is she so dumb? And, what were the people on the floor below his office doing to be paid if not executing any trading business. Seem like this scam involved a lot of people who can't feign ignorance. Didn't she have to sign on his taxes, or did she have her own wealth and or business separate from his? Hmmmmmmm.

[Jimboy17]

07:11 PM on 03/04/2009

The biggest thief in the history of the world, responsible for the suicides of two people, eraser of endowments and charities, and the single worst thing to happen to the Jewish community from within its own ranks thinks that he is somehow deserving of clemency? The man, his family, and all who participated in this atrocity don't deserve the clothes on their backs. Let him rot in jail, and his cronies work for the benefit of others, earn small salaries and learn the value of hard work and service. Disgusting.

[Ipanemagirl]

07:04 PM on 03/04/2009

Actually his whole family knew what he was doing so they are all accomplices.They should all do jailtime. Are greedy lawyers going to negotiate some sweet deal for him for some( stolen money) sweet fee?? They should go to jail too then!
They should seize all of his assetts and try to pay back the people he owes money to with what they can collect. No deals allowed.

[Ipanemagirl]

07:00 PM on 03/04/2009

I think he and his family should have to cough back every single assett he has left....what else does he need when he is in jail? The family probably has enoough assetts stacked away in the banks of Switzerland so not to worry!

[Tags]

06:46 PM on 03/04/2009

When Ruth loses his money just like his other victims, the consequences of his transgressions will finally hit home.

[Laserbeam]

06:45 PM on 03/04/2009

Does anyone else think he vaguely resembles George Washington in this particular photo?

Apologies to George....

[Roxanna]

06:30 PM on 03/04/2009

Absolutely Not.... This man should loose everything... like everyone else had too.

[SharonB]

06:22 PM on 03/04/2009

This man is the closest thing to a real satan that there is. One of his victims is over 90 and workng now as a Walmart greeter to pay his bills.
His wife and sons and their wives are all involved in this up to their noses. If any of them have to make restitution or serve time I will be very surprised.
Steal $5,000 from someone... prison and your family can starve and no one gives a d*mn.
Steal $50 billion... live like a king and your family too.

[Bush-Rolled]

06:21 PM on 03/04/2009

Just makes me wonder how many millions of $ the people who have lost their jobs and their homes think he and his wife should be able to keep.

[janeyre]

06:21 PM on 03/04/2009

Does anybody really think this crook, did this by himself? Let his whole family eat Cake... Take everything... He has money stashed away in some off shore account... His sons, wife, relatives, should all be locked up...

[GorBud]

06:16 PM on 03/04/2009

American Justice? Sorkin the lawyer and his team are being paid to put their educations and brains to work for Bernie. They are professional liers and obsfucators of the worst kind. If a young kid grabs money from a store and runs he gets bail he can't afford to post and legal aid which is ineffective. Bernie and his team will soon be trying to sue the victims of his scheme. Sorry but this is one of those times when just taking him out and tie him to the nearest lamp post so passersby can spit on him daily. In Pennsylvania Judges (lawyers that knew who to bribe) were putting kids in jail and getting paid by the head. The entire legal "profession" needs to be given a complete overhaul by non lawyers--but it will never occurr.

[phrancine]

06:09 PM on 03/04/2009

Okay, please explain to me how the DEA can seized everything you own in a drug bust (because it is all related to the money you got illegally) BUT Mr. Made-off keeps his stuff and cash because it is unrelated to the massive fraud that made him so very rich.....This is highly illogical....