Madoff sons, brother, niece to be sued: report

[Demeter]

Source: Reuters

Epic swindler Bernard Madoff's two sons, his brother and a niece will be sued this week for $198 million, the trustee winding down the Madoff firm told CBS News' "60 Minutes" broadcast on Sunday.

Sons Mark and Andrew, brother Peter and niece Shana all held executive positions with the firm and should have known about the multibillion-dollar, worldwide 20-year-long Ponzi scheme, trustee Irving Picard and his chief counsel David Sheehan, told the program...Asked by "60 Minutes" whether investigators were working under the assumption that there was money still hidden, Sheehan said: "Yes, we are" and Picard said, "We'd assume it's millions and millions of dollars."

Sheehan told "60 Minutes" he estimated about $36 billion went into the whole scheme. "About $18 (billion) of it went out before the collapse. And $18 (billion) of it is just missing. And that $18 billion is what we're trying to get back." ...All of the family members have said in previous statements that they had no knowledge of Madoff's crimes...The sons withdrew $35 million from accounts with little or no investment, Picard told "60 Minutes"...



The trustee and his lawyers have filed 13 suits already in an effort to recover about $15 billion, including one against Madoff's wife Ruth and several claims against so-called Madoff feeder funds. Only $1.5 billion has been recovered so far and the estimates for the actual money that was lost in the fraud have varied from $13 billion to $64.8 billion.



Read more: http://news.yahoo.com/s/nm/20090927/bs_nm/us_madoff_sons_2

[stlsaxman]

1. the question is- How could they NOT have known?

:shrug:

[aquart]

2. Hysterical trust?

Kind of like hysterical blindness.

Hysterical trust occurs, say, when a spouse comes home early, finds evidence of cheating, and has nightmarish hours before confrontation in which to picture the barren future. The spouse returns, is confronted, and denies everything. The spouse accepts the denial despite the evidence. A condition of hysterical trust then exists in which the spouse knows, but refuses to admit he/she knows. Refuses to admit it to him/herself.

It might have been like that. Doesn't mean they don't deserve to be sued into destitution, however.

[atreides1]

7. Sure

Or they played a secondary role in what Madoff was doing, you know, plausible deniability!

[katkat]

8. sure they do

Sure they deserve to be sued into destitution. You're assuming all four people have the brains of turnips. Hardly likely. And even if they are turnip brains, the money they have is ill-gotten gains.

[aquart]

14. And you assume hysterical trust only occurs in idiots.

Uh, no. Actually, no.

[Liberal_in_LA]

10. even if they didn't know they certainly profitted with big salaries other benefits. Illgotten gains

[KakistocracyHater]

3. now the 1930s actions, going after the wives' fortunes, etc looks reasonable

It's the 30s all over again, or is it only 1991?

[stlsaxman]

6. Wait a minute- it says...

"Sons Mark and Andrew, brother Peter and niece Shana all held executive positions with the firm"...

How is that anything like the 1930's? These people WORKED for him.

:shrug:

[Vidar]

4. More good news. Cool!

[Downwinder]

5. Would a defense be "The SEC should have known"?

[Liberal_in_LA]

9. read that the sons are trying to get some of the madoff money

[dugaresa]

11. Good, they are all theives.

[Blue_Tires]

12. good...go after them ALL

[tonekat]

13. I'm visualizing a "Madoff family compound" inside a prison

Several cells. The family that serves together...

[Demeter]

15. Allow Me: The Family that Swerves Together, Serves Together

[TankLV]

16. Ahhh - more CRIMINALLY RICH who don't fucking KNOW where the money came from!!!

It just "magically" appeared!

After all, why would ANYBODY expect a member of the BOARD OF DIRECTORS to know ANYTHING!

They only collected "millions" in salary for just keeping the seats warm!!!