Legal News

Cough It Up, Bernie: Feds Look to Seize Homes, Boats, Pianos . . .

By Ashby Jones

Last week, admitted swindler Bernie Madoff was, uh, evicted from his Manhattan apartment and sent to vastly more spartan digs. If the government has its way, Bernie’s wife, Ruth Madoff, may also find herself cast out of 133 E. 64th St.

On Sunday, federal prosecutors indicated they plan to seek forfeiture of $17 million in cash, $45 million in bonds, as well as various homes, boats, cars, silverware and a $39,000 Steinway piano.

In a court filing made Sunday (which really is a pretty good little read), prosecutors outlined their intentions to seek the forfeiture of millions of dollars in property and cash held in the name of Madoff and his wife, Ruth. Much of the property prosecutors are seeking is held in the name of Madoff’s wife.

The prosecutors’ request represents a mere fraction of the $170 billion the government has said it will likely seek to reclaim. Much of that figure represents funds deposited by investors into Madoff’s fraudulent investment operation and later dispersed to other investors.

About $1 billion in assets has been recovered so far by the court-appointed trustee liquidating his firm.

In their court filing Sunday, prosecutors said they intend to seek the forfeiture of the couple’s $7 million Upper East Side penthouse apartment; a $3 million home in Montauk, N.Y.; an $11 million home in Palm Beach, Fla.; and a $1 million villa in Cap d’Antibes, France. The government intends to seek the forfeiture of four boats: a $7 million Leopard yacht known as “Bull” in France, a $2.2 million fishing boat in Florida and two smaller boats. They’re seeking that Madoff also forfeit four cars, including two Mercedes and a 2007 BMW. Madoff’s lawyers have said the cars are all in Ruth Madoff’s name and the BMW is being leased.

In a court filing made Friday, Madoff’s lawyers said the New York apartment was purchased by Ruth Madoff in 1984. She purchased the French villa in 2000 or 2001 and the Palm Beach residence in 1994. The Montauk home was jointly purchased in 1979 by the couple.

Full post as published by Law Blog - WSJ.com on March 16, 2009 (boomark / email).