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Trustee Sues Madoff Family Businesses
by Paula Schaap ,Senior Reporter , July 30, 2010

The trustee overseeing the liquidation of convicted conman Bernard Madoff’s $65 billion Ponzi scheme is suing businesses owned by his family for more than $30 million.

Those sums, according to the complaint filed by trustee Irving Picard in New York bankruptcy court Thursday, were fraudulently transferred to the family entities from Madoff’s Ponzi scheme.

The trustee alleged that Madoff’s brother Peter, sons Mark and Andrew and niece Shana, were derelict in their duties as senior managers of the business and unlawfully received about $200 million to fund their lavish lifestyles.

The trustee has already sued the same family members personally in a separate bankruptcy court proceeding.

An attorney for Mark and Andrew was traveling and could not be reached for comment. An attorney for Peter did not immediately return a call.

Timothy Valliere, an attorney for Shana, said his firm was not yet authorized to speak on the record regarding the latest lawsuit.

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Trustee Sues Madoff Family For $199M
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