UPDATE: On April 30, the AP reported that Bernie Madoff's sons will likely face tax-fraud charges sometime in 2010.But as yet, there's no indication that they'll be brought up on more-serious charges of securities fraud.Papa Madoff had claimed his boys, who codirected trading at the firm, learned of the fraud only when he told them, days before his arrest.
Bernie Madoff swore he'd acted alone when he pleaded guilty to his billion Ponzi scheme.It was a preposterous claim, so why, more than 15 month later, isn't more of his inner circle behind bars?Neither the FBI nor the US Attorney's Office is talking.But for some of these Madoff enablers, the vacation on the investors' dime may not last forever.Picard is suing Mark and Andrew, along with Bernie's brother Peter and his niece Shana, to recover some 9 million.
But their assets are not frozen, and none of them has yet been charged with any crime. Madoff Investment Securities LLC in the early days, when her father donated office space to help get it going, and was active in management up until the end.
Over the years, the firm covered everything from her movie rentals to Armani shopping in Paris and a .3 million yacht.
Mark Madoff withdrew nearly million from company accounts over the years, claims Irving Picard, the trustee hired to liquidate Madoff's enterprise, and he divides his time between a .6 million Manhattan apartment, a .6 million Nantucket home, and a .2 million pad in Greenwich, Connecticut.
All told, Mark got more than million in salary and bonuses, and racked up 7,000 in personal expenses on the corporate Am Ex.
[Editor's note: two years after his father's arrest, Mark Madoff killed himself.] Andrew Madoff received more than million in compensation, Picard alleges, and used another mil to cover expenses such as a 0,000 investment in Blow Styling Salon, LLC, and a ,000 payment to Lock and Hackle, a members-only fly-fishing and hunting club.
And waiter beware: After dropping more than a grand on the corporate card at Manhattan's swank Per Se, Andrew left a miserly tip.