Prosecutors Set Sights on Madoff Kin In Tax-Fraud Probe; Accused of Using Firm as 'Piggy Bank'

[Amerigo Vespucci]

* FEBRUARY 11, 2010

Prosecutors Set Sights on Madoff Kin
Brother, Sons of Ponzi-Schemer Face Tax-Fraud Probe; Accused of Using Firm as 'Piggy Bank'

http://online.wsj.com/article/SB10001424052748704337004575059753363224076.html

BY AMIR EFRATI

Federal prosecutors in Manhattan are pursuing criminal tax-fraud cases against Bernard Madoff's brother and sons, according to people familiar with the matter.

His brother, Peter Madoff, was the chief compliance officer of Bernard L. Madoff Investment Securities LLC. Sons Mark and Andrew Madoff helped run the firm's market-making division, which was separate from the investment arm where Bernard Madoff perpetrated his multibillion-dollar Ponzi scheme. Through representatives, they all have denied knowledge of the fraud.

Lawyers for Peter Madoff, who is in his 60s, didn't respond to requests for comment about the tax-fraud probe.