Bernie Madoff’s sons and brother investigated
With Bernie in jail, federal prosecutors pursue family members for tax fraud
The two sons of Bernie Madoff, who famously reported their father to the authorities after he admitted his $65bn Ponzi fraud to them in December 2008, have themselves become the subject a criminal investigation.
According to a report in the Wall Street Journal, Mark and Andrew Madoff are being pursued for tax fraud by federal prosecutors in Manhattan.
The two men helped run the market-making division of Bernard L. Madoff Investment Securities, which was separate from the investment arm which their father used to hoodwink investors worldwide into parting with millions of dollars. He is now in prison in North Carolina, less than 12 months into a 150-year sentence.
Martin Flumenbaum, a lawyer representing Mark, 45, and Andrew, 43, issued a statement on Thursday saying the two brothers had no prior knowledge of their father's crimes and had contacted authorities immediately their father admitted his fraud. The sons "continue to cooperate fully with the authorities in their ongoing investigations", he said.
Bernie Madoff's brother, Peter Madoff, is also under investigation for possible tax fraud. In his 60s, Peter is the younger brother of 71-year-old Bernie, and was the chief compliance officer of Bernard L. Madoff Investment Securities.
The WSJ reports that, through representatives, Peter, Mark and Andrew have all denied knowledge of tax fraud.
It is not clear what the nature of the alleged fraud might be. It is possible that a claim by Irving Picard, the court-appointed trustee in charge of recovering assets for Madoff's investors, may have a bearing on the investigation.
Picard claimed in October that four family members who worked for Bernie Madoff used the company as a "piggy bank" to pay for personal expenses such as homes, cars and boats, as well as credit-card charges for restaurants and vacations. ·