The wife of accused swindler Bernard Madoff is arguing that their $7 million Manhattan penthouse and an additional $62 million in assets belong to her.
In court papers filed Monday in U.S. District Court in Manhattan, Ruth Madoff and her lawyer claim that the Upper East Side apartment, $45 million in municipal bonds and $17 million more in a separate account, all belong to her, rather than to her husband, who was charged with a $50 billion scheme to defraud investors.
The bonds, in a Cohmad Securities account held by Ruth Madoff, and about $17 million held by her in a Wachovia Bank account, “are unrelated to the fraud, according to the papers.
The papers were filed in connection with a U.S. District Court judge’s order Monday to partially lift a freeze on Madoff’s assets so that he could cooperate with a court-appointed trustee overseeing the liquidation of his firm to recover money for bilked investors.
To date, the trustee has said the Manhattan penthouse apartment and other properties in Montauk, N.Y. and Palm Beach, FL, which were used to secure Bernard Madoff’s bail, were off limits. But if there’s a conviction, those assets might be seized to help pay victims’ claims.
“We are looking at every member of the Madoff family,” David Sheen, an attorney representing the trustee said regarding the personal property.
Cohmad Securities, where Ruth Madoff says her account holds municipal bonds, had an office in Madoff’s headquarters in midtown Manhattan. The firm was part-owned by Bernard Madoff and has been alleged by the Massachusetts Securities Division to be a “feeder fund” to his investment firm.
Last month, Massachusetts regulators said Ruth Madoff withdrew $15.5 million from Cohmad Securities in November and December, including $10 million on the eve of her husband’s arrest for securities fraud.
She has not been charged with any wrongdoing, however, and is represented by the same attorney as her husband.
Bernard Madoff was arrested Dec. 11 and charged with securities fraud after authorities said that he confessed to his sons that he had carried out a Ponzi scheme for years, using new money from investors to pay off early investors, while issuing bogus statements claiming investment gains. He has been under house arrest in their Manhattan apartment.
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10 Comments
#1. Alison 03.03.2009
She does not deserve ANY of the money or properties unless she can prove beyond a shadow of doubt that it belongs to her and did not come from her husband or one of his numerous companies, which she probably can’t. of course she is one of the rich so normal rules do not apply.
If I had stolen lets say about $100,000.00 from my bosses and clients, would I be allowed to stay home? no my butt would be in jail so fast..
on the TV today, it was mentioned that Barack Obama is trying to get rid of prosperity… let me tell you prosperity is not 2% of the population making more money than they can EVER spend and the rest of us watching them complain about their lot in life. I am hopeful that his efforts will be successful but even if he fails, at least he tried to do something!! remember the last guy?!? seemed to spend most of his time with his head up his butt, telling everyone that thing were going well….
#2. kay 03.08.2009
Dear Ruth Madoff: Hey, it’s not too bad on the streets. I have a great job at a non-profit org for health centers focussing on children. I have benefits & 401K (& I only lost 32% this year) yeah, me!! You & Bernie owe $50 BBBBBBBBillion bill. I’d suppot you if only you had inherited one dime from your family (ha!)…, that may have been something… if ever had a job in your life, …maybe, something… Maybe Social Security might assist you. I’m so glad your own kids turned in your lying, cheating pig guy, however, I’m so sorry for your $$$loss$$$ & but so proud of your, hopefully penniless (like soon to be you), kids. Quit writing checks & stay away from the post office. You & your man(?), won’t need that much in prison. However, I’d love to see your new felony resume. Welcome to real life. But, maybe you & your kids & family could do a pathetic reality series. Oh, perfect, to do it in maybe… Florida… & have poor guest retirees…..!!!! They sure need the $ for FOOD. If Bernie was your one & only, Yikes. I’m feel embarrased hurt that Ruth is my Hebrew name.
Kay
P.S. Please send me your resume and re-instruct, your also to be found guilty, patsy family to send me a watch (or other shipped jewelry) as it would be so appropriate & appreciated. I’ll take better care of your ex-property than your future prison safe-keeping manilla envelope, when you’re indicted. Bernie ruined life for you & a lot of rightous, better humans than you two creeps. Please let me know if you can’t sleep & need a Rx. I understand you do not know rightous means.
#3. BLANCHE MCKINNEY 03.11.2009
NO, SHE COULDN’T HAVE BEEN MARRIED THAT LONG TO HIM AND VERY SELDOM APART MORE THEN ONE DAY THAT SHE DIDN’T KNOW WHAT WAS GOING ON. IT MAY BE LIKE A WOMEN THAT HER HUSBAND IS CHEATING SHE DOESN’T WANT TO FACE THE FACT BUT STILL KNOWS IT IS HAPPENING. THEY WANT TO PLAY THE BIG ROLE LET THE CHIPS FALL WHERE THEY MAY. WHY SHOULD OTHERS THAT DIDN’T HAVE A PART IN THIS AT ALL LOSE SO MUCH AND HER KEEP ANYTHING. WE NEED TO START MAKING THESE PEOPLE PAY FOR THEIR CRIMES AND MAYBE HONEST PEOPLE WILL STAY THAT WAY INSTEAD OF CHANGING WHEN MONEY PLAYS SUCH A BIG PART IN THEIR LIVES.
#4. Mark Fischer 03.11.2009
Ruth Madoff sounds strikingly like Carmela Soprano. In fact, if they ever do a bio-pic Edie Falco would be perfectly cast.
#5. Rima Austin 03.11.2009
Jesus help those that are at this moment being physically removed from their homes all over the country. Jesus help those that try to make life comfortable for their children while they live inside their vehicle. Help those who are right now wondering to themselves where their next meal will come from but not wanting to say it out loud for fear of their children losing hope. Ruth, you and your husband are scum! However, you aren’t the only ones. There are hundreds of scumbags just like you in America you just happen to be in the headlines. With all the destruction and lost hope in America and you are afraid you are going to lose your precious condo! This is what happens when capitalism replaces humanity. Shame on you! Shame on you.
#6. Cathy 03.11.2009
Ruth, darling, you lying, thieving bitch! Get a job!
#7. Marilyn 03.11.2009
All I can say Ruth darling..what goes around comes around.. get out of the condo and work like other women do and then just maybe you will deserve a home cooked meal… just maybe
#8. Ed 03.11.2009
No money! No home! Nothing for her but jail time!!
#9. Anne 03.11.2009
Ruth you and your entire family should be severly punished for all the lies, stealing and ruining other peoples lives. Did it never occur to you that your husband was going to get caught—–all evil things come to light at one time or another—-you cannot do wrong and get
by with it. Oh, I just feel so sorry for you that you are concerned about keeping your penthouse and other assests—-if the law in this United States allows you to stay out of prision —-and keep any of the things you stold from others we have no law—-period….I know I have worked all my life—-we have saved for our retirement and now due to your husbands actions, I believe, the entire fininacial system is broken in America—and we have lost as well—-but for those of us who know what hard times are we can get by—-but for folks like you who have always lived the high life —-it is going to be easy comparted to what we have
had to do just to get by in this life. I hope they throw the book at you and them some—-for all those you have ruined—you should be made to pay back every single cent you stold—God hates a thief and a lier –like most good Americans.
#10. WMM 03.13.2009
It is simple. Ruth was in the know as the 15 Million in question, it will be alledge by her attorneys, was a repayment for a loan to his fraudualent investment firm from her “funds”. To conduct this type of business she had full knowledge of his deception. The Paperwork that will be generated by her and Bernie’s attorneys will be an attempt to cover the withdraw. the timing was to the minute as Bernie and Ruth both knew that the indictment was coming down as the SEC investigation was transparent due to the necessary court documents and subpoenas filed to access their company records. Ruth withdrew the money to protect what she could before the government seized it. This was done with full knowledge of her husband’s fraud and the forthcoming government action. Remember people like Bernie and Ruth are true “Narcissus
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