The Real Deal New York

Madoff sons fashioned fake loans for NYC real estate buys: suit

Suit says father's firm operated as a family piggy bank

July 15, 2014 04:55PM

Mark Madoff and Andrew Madoff

Mark Madoff and Andrew Madoff

An amended lawsuit against Ponzi schemer Bernie Madoff’s sons alleges the pair diverted tens of millions from their father’s firm to engineer fake loans they then used to buy Manhattan real estate.

The suit, filed in U.S. Bankruptcy Court in Manhattan and brought by Irving Picard, who is liquidating Bernard L. Madoff Investment Securities, says the activities of brothers Andrew and Mark reflected their “sense of entitlement,” according to Reuters. Picard also accused the two Madoff sons of deleting emails that linked them to their father’s Ponzi scheme during a 2005 U.S. Securities and Exchange Commission investigation. The senior Madoff’s firm, the suit says, virtually operated as a family piggy bank.

Picard aims to retrieve $153.3 million from Andrew Madoff and Mark Madoff’s estate, as well as Mark’s widow, Stephanie Mack.

Attorney Martin Flumenbaum, who represents Andrew Madoff and Mark Madoff’s estate, told Reuters the new allegations are “unfounded” and said neither son “knew of, or knowingly participated in their father’s criminal conduct.”

“The trustee has forgotten that it was Andrew and Mark who turned their father in to the authorities,” he added. [Reuters]Julie Strickland

6 Responses to “Madoff sons fashioned fake loans for NYC real estate buys: suit”

  1. July 15, 2014 at 5:29 pm, Harry Potzer said:

    Now you’re in trouble. Who “Madoff” with the money now?

  2. July 15, 2014 at 8:19 pm, james said:

    Ha, the wives trying to steal the money now fr the dead brother and bernies other son. Wenches

  3. July 15, 2014 at 8:38 pm, Perry said:

    plausable

  4. July 16, 2014 at 9:57 am, James Learn to Read said:

    James clearly didn’t read the article. The son’s deserve to have no money, as should give all their savings away to the families that lost money. 0% of the money was legit.

  5. July 16, 2014 at 10:16 am, what NY real estate? said:

    They turned their own father in? That is very altruisitic.

  6. July 16, 2014 at 11:04 am, WannaBeLandlord said:

    Ruth and Andrew Madoff are up in Greenwich, CT. Walter Noel said it would be a good town to lay low in.

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