The Real Deal Miami

Madoff house could still be seized

March 19, 2009 11:52AM

Ruth Madoff, who declared the family’s $9 million Palm Beach home her primary residence after her husband, Bernard Madoff, confessed to a $50 billion Ponzi investment scheme, may still lose the luxury house in the legal shakeout. The state constitution protects homestead property from creditors, but the Madoffs still have many obstacles to overcome before the 8,700-square-foot home at 410 N. Lake Way is in the clear, experts said Wednesday. Julianne Frank, a bankruptcy attorney in Palm Beach Gardens, said the house could still be subject to federal forfeiture if authorities can show the property was bought with funds obtained through fraud.