Ruth Madoff's Fur Coat Taken By The Feds

NEW YORK — Federal marshals seized disgraced financier Bernard Madoff's $7 million Manhattan penthouse on Thursday and forced his wife to move out and leave her possessions behind, including a fur coat she had asked to take with her, an official told The Associated Press.

Proceeds from a sale of the property and its contents could be used to help reimburse those who lost billions of dollars investing with Madoff before he confessed to running a Ponzi scheme.

U.S. Marshal Joseph Guccione said the marshals arrived at the property at noon with a court order permitting them to take custody of the apartment and to make anyone living there move out. Guccione said Madoff's wife Ruth had been advised in advance of the marshals' plans and was leaving the residence and surrendering all personal property.

"She will be leaving," he said at midday. "Restitution for the victims is the government's top priority."

Typically, the U.S. Marshals Service changes all locks and secures a property when it seizes a location.

By about 1 p.m. EDT, 67-year-old Ruth Madoff had left. It was not immediately clear where she went to live.

Ruth Madoff first argued with marshals who came to the apartment and asked to stay, then asked if she could take a fur coat with her, a federal official informed of Ruth Madoff's departure told The AP. The official wasn't authorized to discuss details of her encounter with marshals and spoke on condition of anonymity.

Ruth Madoff walked out of the apartment carrying just a straw bag after she was told she couldn't take her coat, the official said.

Story continues below

advertisement

"This cheap effort to smear Ruth Madoff is meritless _ with a little over two days to pack up her entire life of 68 years and find a new place to live, Ruth still managed to move out right on time, in an orderly fashion and in total compliance with her court approved agreement," said her lawyer, Peter Chavkin. "And it was she who forfeited the furs last Friday as the publicly filed stipulation states."

"These anonymous attacks on her should stop," Chavkin added.

The 71-year-old Madoff was sentenced Monday to 150 years in prison. He pleaded guilty in March to charges that his investment advisory business was a multibillion-dollar Ponzi scheme that wiped out thousands of investors and ruined charities.

Authorities said Madoff had carried out the fraud for at least two decades before confessing to his sons in December that his investment business was a fraud and that he had lost as much as $50 billion.

Last week, Ruth Madoff agreed to give up all of her possessions in return for a promise that federal prosecutors would not pursue $2.5 million not tied to the fraud. The money, though, is not protected from civil legal actions that might be pursued by a court-appointed trustee liquidating Madoff's assets or by investor lawsuits.

Ruth Madoff broke her silence Monday when she said in a statement that her husband "stunned us all with his confession and is responsible for this terrible situation in which so many now find themselves."

Before she agreed on a deal with the government to resolve her finances a week ago, Ruth Madoff had indicated through lawyers that she planned to try to keep the penthouse and an additional $62 million in assets as unrelated to the fraud.

Before the fraud was exposed, the Madoffs had homes in Palm Beach, Fla., the south of France and the tip of Long Island along with the midtown Manhattan penthouse. They also traveled by private jet and yacht.

The couple met at their Queens high school and married in 1959. Ruth Madoff worked with her husband when he started his financial business in 1960 and she reportedly still had an office near his when the fraud was exposed.

Madoff has said he operated his fraud without the knowledge of his family.

Comments

[Ozarks]

The statement in article: "Ruth still managed to move out right on time, in an orderly fashion and in total compliance with her court approved agreement," implies Ruth is homeless. But , her $2.5 million "court approved agreement" is a lot more than Bernie's investors will ever get from Madoff's estate.

[jaslyn]

She wants to wear a fur coat to Wallmart where she'll now be shopping? She's in for a real reality check.

[JackRusselTerrier]

Yea right. That's where all the millionaires shop. She's got 2.5 million and whatever else she squirreled away. This woman will NOT be poor.

[toppermost]

what do you mean you dont have spicy moutard sir? i simply will not eat my "big mac" with out it.

[duncansdad]

They should keep their eyes on her. I have a feeling she will lead them to the money. This woman is a liar and I wouldn't be surprised if she was more involved than anyoine suspects.

[kerumbo]

I do NOT buy the ridiculous fiction that Ruth "knew nothing" about where all those billions came from. You don't get that rich from legitimate commissions, and you don't have to be a financial wizard, nor the active criminal in this crime couple, to realize that. She conspired in massive theft, if only by taking the money and keeping her mouth shut, and she belongs in prison for life.

[MikeHollywoodBeachFL]

Great observation kerumbo--i was thinking the same thing--the math doesn't work. having homes all over the world, yachts, flying private jets around the world, etc, etc. Anyone who thinks she wasn’t 100% complicit is naïve, a fool, or someone who probably personally benefited from Maddoff scam.
Needless to say, I have no sympathy for Ruth having her fur coat taken from her---I am sure she has plenty of money stashed for a new coat once things settle down. It's now time for the second half of their (fraud) show which has been masterfully orchestrated so Ruth and her kids can keep what monies that don't belong to them. I hope the Feds, especially the Jewish Community keeps the pressure on them and tracking down all the banks accounts with the same vigor they had hunting down the Nazi's who escaped after the war.

[tyger]

If she had no knowledge of the fraud why did she and he set about sending money and property to relatives and friends. The govt found out about it and exposed the activity, even asking the judge to cancell Madoff bail.

[observer151]

There are lots of marriages where neither party really knows what the other party does in any great detail - especially in a business setting as opposed to husband works as a truck driver and the wife is a nurse (no offense to truckers or nurses).

Say you are an accountant and your spouse is a lawyer - do you really know the ins-and-outs of every client and transaction/case your spouse deals with? Doubt it. Do you know whether your spouse is cutting things legally close to the line in his/her business dealings, or even steps over the line? Maybe not.

If you work in advertising/marketing in a firm that has an active fraud going on and all you are working with is performance numbers your accounting department told you are correct, are you an active willing participant in the fraud?

I'm not saying Ruth Madoff had or didn't have knowledge of what went on in any detail - I'm just saying that it is plausible that she didn't know.

Also, in cases like these it's often the law enforcement authorities who ought to have RICO laws used against them. This whole case proceeded at a pace that is lightening fast compared to anything I've ever seen. You have to wonder how detailed an examination was really done.

[JackRusselTerrier]

Oh please. Do you really think it matters whether or not she knew? I'd love to hear your so called "plausible" explanation. I need a good laugh after reading the rest of the Ruth Madoff apologist who wrote other comments on this thread.

[Wide Stance]

Apologists? Your ignorance is what is amusing.

[LiberalBuzz]

Actually it's very possible. Years ago a police chief in Vegas was found to have a 25 year stash of Child porn that he had slowly taken or copied from the police evidence vaults and his wife and kids had no idea.

Anything can be concealed if you try hard enough. Or have a spouse who just doesn't know the ins and outs of your business.

As long as the money comes in, it's easy to be kept in the dark. You spend your time at teas, lunches, shopping, trips and charity events so why should you go down to the office and demand to know if it's all on the up and up?:

[myersms]

I find it offensive to believe Bernie was the only one that knew,and Ruth did'nt?These two barely went to the bathroom separately,she was in on it up to her neck.And Bernie was just carrying on the family business,only at a much larger scale than anyone could of ever imagined.His father and mother were also securities fraudsters.Apple did'nt fall far from the tree HEY?

[Wide Stance]

Agreed. I would say it is more than plausible that she didn't know, almost necessary in traditional marriages where the man is the "bread winner." The woman doesn't question her husbands methods in these relationships, as long as her needs continue to be met. Her interests are only served if she supports him and enables his success. She would be in denial so powerful that she was literally the last to know.

[Rosanneofpgh]

SHE WORKED IN THE OFFICE WITH HIM!! How could she possibly do that and NOT know that something illegal was going on? She deserves prosecution and jail time as much as he does.

[Wide Stance]

It's highly unlikely that Ruth knew what Bernie was doing. It makes people feel better to think simplistically and blame her too, but it ignores the psychology of criminality, and the psychology of spousal relationships. He didn't come home and talk about the people he swindled that day. He fooled Ruth, he would have had to do so. His sons might have known, but not his spouse. He would have done everything to protect his image around her.

[myersms]

You forget in the earlier days Ruth was the honey to the bees,he used Ruth to attract wealthy investors,I find it hard to believe she knew nothing about it.She had an office pretty much right next to Bernies,and don't you think Ruth being an intelligent person had to wonder where in the world all this money was coming from,and how did Bernie pay all those dividends even in slow times.It was an family affair,everyone of them knew something was'nt on the up and up.

[Wide Stance]

Again, that type of speculation ignores the psychology of traditional relationships.

[QuietAmerican]

The wages of sin....

[kalerik]

Another reason to despise her. A shallow woman who doesn't mind torturing animals so that she can flaunt her faux wealth.

[MikeHollywoodBeachFL]

What?!!, her lawyer is whining about the treatment she “said” the Feds gave her because they asked for something which was stolen back?!! Give me a break! --Ruth had plenty of time to prepare to move out—yet she stayed until she had to be asked to leave...maybe just to evoke a little sympathy...poor Ruth! First, how could anyone ever believe anything she (or her sleez-bag lawyer says) when they just pulled off the biggest fraud in history! Does anyone REALLY think Bernie didn’t start stashing large amounts of money YEARS ago knowing this day would come?? Folks, remember HE TURNED HIMSELF IN, plenty of time to set things in motion to conceal and hide money.
Here’s what will happen: Ruth will “play poor” for a few years in this country—long enough for things to cool down, she’ll move outside the country to Israel or another country where millions have been stashed and the attorney (hired long ago) will quietly and covertly filter money to her. She probably was the master-mind setting up hidden banks accounts since she knew this would happen eventually--and Bernie was going to take the fall for their family of criminals. Yes, ALL of THEM we're involved and knew to some extent.
The entire family knew this day was coming—and Bernie was the family’s sacrificial lamb. I just hope some of the monies of their ill-gotten gains can be traced to help so many who lost their entire savings.

[shades3]

There seems to be a lot of attention paid to whether or not Ruth Madoff got to keep her fur coat, mostly because of what was originally paid for it.
Anyone who has ever tried to re-sell a fur coat, no matter what they paid for it, quickly finds out that, much like a car, the minute they take it home, it's USED.
If Ms. Madoff tried to sell her coat, no matter what it cost to begin with, she would be lucky to get a small percentage of the original price.
It's USED, so taking it is punitive.
The jewelry retains it's value, even increases, depending on what it is.
Clothing, even an expensive fur coat does not.

[JackRusselTerrier]

That is not the point of why the fur was confiscated. The fur was purchased with stolen money and even if it wasn't - all the money Bernie stole will never be recovered. In all fairness, she deserves NOTHING. She is an accomplice whose lifestyle was made possible by criminal activity. Her CLAIMED ignorance is no excuse. Almost ALL things depreciate. You obviously do not understand the law to make such a silly comment.

I feel as sorry for this woman as I do for Eva Braun - Hitlers concubine.

Can I keep my fur? What an insulting statement. Poor baby - She only has 2.5 million and whatever else she squirreled away BEFORE the Feds came.

I am astounded by the people on this thread defending Ruth Madoff.

[Darleen Michael-Baker]

I think you're being very harsh. She could well NOT have known what her husband was up to. See later posts. Having said that, she should have gracefully handed over the keys and walked away. She lived a lavish lifestyle most people cannot even begin to imagine and now she knows it was all done on stolen monies. The fact she's trying to hang onto her ill
gotten "stuff" speaks volumes about HER character. And I will say again. $2.5 million is a lot but at today's interest rates she'll be lucky to see $25,000 annually. quite a come down.

[jenrose]

She was his confidant and business partner in crime all the way. She was the personality that drew in the victums because of her looks I've read that she drew the clients in from clubs, association, etc. She was his bookkeeper so she did it.

She's just as greedy as he is and I hope her next job would be cleaning houses. The princess will have no fur coat anymore how sad for her. No more country clubs, palatial homes homes and boats on other peoples money!!!

Poor, Poor thing!! BOO! HOO! RUTHIE She'll have to cry in her pillow because no one has any compassion for her plight that she brought on herself.

[NeoDog]

People that used Madoff could have invested their money with mutual fund groups Fidelity, Franklin Templeton, TRowe etc. Instead of using real firms these people gave Madoff their money because they are of the same religious & ethnic group. They deserved to lose all of their their money for their primitive tribalism clique mentality.

[frieda406]

huh? that makes no sense. i know several people whose financial advisor (not jewish btw) invested their monies w/madoff. they were not of the same religious & ethnic group. such blanket statements are foolish, stupid and untrue.

[ColoradoCool]

What do you mean "primitive tribalism clique"? That sounds like anti-Semitism? Is it?

[jaslyn]

is that really you in the picture?

[donw]

Bernie has said that only he knew about the ponzi scheme. The Madoffs had homes in Palm Beach, Fla., the south of France and the tip of Long Island along with the midtown Manhattan penthouse. They also traveled by private jet and yacht. My question is who was working the smoke and mirrors when he was vacationing.
Ruth Madoff worked with her husband when he started his financial business in 1960 and she reportedly still had an office near his when the fraud was exposed. If she didn't know what he was doing you'd have to conclude she's dumber than a box of rocks.

[Symbiot]

No, they owned a French *VILLA* in the south of France. A bit different than a house... That's a whole frickin' village of houses!

[theexodusishere]

I'd let her have the fur coat....after I 'accidentally' dropped an open can of Glidden paint all over it.....I just find it very hard to believe that she had no knowledge of her husband's shady dealings. Does anyone know if she was granted immunity for testimony or is she still standing by the fact that she was an ignorant wife? Once again, greed rules. Hundreds of people are penniless because of her husband, yet she has the audacity to ask for a fur coat on the way out the door. How can it be determined that some money was not related to the fraud?

[MNinWI]

That's the way sociopaths are-lie lie lie. If you're gullible enough to fall for their schemes-whatever that might be-too bad for you. She should not be allowed to keep a damn thing-nothing- even if she did have some kind of legit business. She knew very well what was going on & she was good w/ it. People like that should be removed from civil society. She should be in prison along w/ her hubby.

[jaslyn]

Those without conscience like Ruth and Bernie are fueled by audacity.

[Trueheart]

Arrogant couple, the Madoffs. Both of them had some brass balls. She knew this was coming, and was obviously advised to make a scene out of it as a sympathy ploy. Luckily someone leaked the bit about the fur coat, and the ploy backfired.

Can her financial assets be attached, or just those shared with Bernie?