Ruth Madoff Sued for $45 Million

The trustee overseeing liquidation of the Bernie Madoff assets, sued his wife Ruth, for $45 million, for what he described as ‘Living a life of splendor”

The trustee, Irving H Picard, in court filings detailed his claims against her, in the US Bankruptcy Court in Manhattan. According to the Associated Press (AP), Ruth Madoff’s attorney, Peter Chawkin, in response, said that Picard’s action was “wrong as a matter of law and fairness. He said that the lawsuit, was “particularly perplexing and totally unjustified, because his client forfeited to the federal prosecutors office, nearly all of the assets described in the lawsuit”

Attorney Chawkin also described as odd, the US government agreement to allow her to retain $2.5 million, as they were unable to tie it with her husband’s fraud. Picard in filings, claim that Mrs. Madoff, for decades lived “a life of splendor”, using the funds belonging to customers of Bernie Madoff’s investment firm.  The trustee also claim that Ruth Madoff came in receipt of tens of millions of dollars, during the final six years of her husband’s business, which was not reciprocated in the form of value or benefit to the firm. According to the Associated Press (AP), Mrs. Madoff took $23.7 million from the business in the final two years, $1.1 million for personal expenses, charged to American Express card, and $2.7 million to purchase her yacht in 2007. Most of these funds, if not all was subsequently transferred to her family members, or other business entities.

The trustee is asking the court to award 44.8 million to it, to be divided among the victims, because Mrs. Madoff knowingly, or should have been aware, that it belonged to the business and its customers. The trustee is also seeking compensatory, and punitive damages, according to the Associated Press.

He said she had no excuse that could be considered credible, that could make her believe, that the money was her entitlement, whether she was cognizant of the fraud or not. Mrs. Madoff was the controller at Madoff securities International Ltd, a part of the group, and was responsible for the account reconciliation, in the firms Investment Advisory Business.

Irving Picard said Mrs. Madoff was still left with substantial wealth, while the investors suffer. Two of the attorneys representing Madoff’s victim, visited him in prison, but while he apologized to his victim, was unaware where money could be found to pay back investors. He will remain in prison for 150 years.