|
Peter Madoff "ignored obvious red flags that the profits reflected in account statements could not have been earned legitimately, to the detriment of BLMIS and its other customers," the lawsuit says. Bernard Madoff's relatives have said they did not know about his Ponzi scheme. His brother's plea raises new questions about the status of the prosecution and whether other family members are being targeted by the government. Lawyers for Andrew Madoff, a son of Bernard Madoff, and Shana Madoff, Peter Madoff's daughter, did not immediately return messages for comment. A lawyer for Bernard Madoff's wife, Ruth, did not immediately return a message seeking comment. Mark Madoff, Bernard Madoff's other son, committed suicide in December 2010 on the second anniversary of his father's arrest. Six former employees and associates have pleaded guilty and are cooperating. Five others, including Madoff's former operating chief, have pleaded not guilty and appear headed to trial. Picard has accused Andrew Madoff of living a high-end lifestyle after receiving more than $60 million, including $31 million in salary and bonuses, from 2001 to 2008. Shana Madoff, a lawyer, had worked at Madoff's investment business since 1995 as compliance counsel and in-house counsel. Picard's civil lawsuit said that "she ignored every red flag of the massive fraud taking place right in front of her." The huge scheme, run since at least the early 1990s, demolished the life savings of thousands of people, wrecked charities and shook confidence in the U.S. financial system. When Bernard Madoff pleaded guilty, he insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate. So far, Picard's office has reached agreements to recover approximately $9.1 billion and has distributed more than $1.1 billion to Madoff's victims. In a statement Wednesday, Picard's spokeswoman, Amanda Remus, said the trustee and his lawyers are aware of the letter to the court about the anticipated guilty plea proceeding involving Peter Madoff but had no comment.
[Associated
Press;
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor