Litigation Against Mark Madoff to Continue Despite Suicide

Mark MadoffMark Madoff may be dead, but the litigation against him isn't going away anytime soon.

Last week, a court-appointed trustee sued Mark Madoff along with two of his siblings, saying they had used ill-gotten gains from their father's fraud.

On Saturday morning, Mark Madoff, 46, was found hanged with a dog leash in his Manhattan apartment. But despite his death, the lawsuits will continue, according to The Wall Street Journal.

"The litigation will take its course and the death of Mark Madoff will not impact that fact," the court-appointed trustee's lawyer, David Sheehan, said.

Mark Madoff worked with his father Bernie all his career. He has never faced criminal charges related to his father's fraud, but has been under investigation and faced accusations that he benefited from his father's crimes to the tune of millions of dollars.

Court-appointed trustee Irving Picard sued members of the Madoff family, including Mark, for $200 million as part of an effort to recover funds for the victims of Bernie Madoff's multi-billion dollar Ponzi scheme.

Mark Madoff, who reported his father's fraud to authorities, struggled to find employment after the scandal broke. Meanwhile, legal bills and public animosity mounted.

"Despite what people think, I need to work," Madoff told a friend in late 2009. "How am I going to support my family?"

The scandal took its toll on Mark Madoff's personal life as well. Many of his childhood friends had invested money with his father Bernie. When the news of the fraud broke, it poisoned these relationships.

Picard filed lawsuits saying that Mark Madoff knew or should have known about his father's fraud. The suit accused Mark Madoff of receiving at least $66.9 million improperly through his father's investment fund.

Picard said that if Mark Madoff and other family members at the firm "had been doing their jobs-honestly and faithfully-the Madoff Ponzi scheme might never have succeeded, or continued for so long."

Mark Madoff's lawyer sought to have the case dismissed, saying it was baseless.

Bernie Madoff is currently serving a 150-year sentence in North Carolina. Authorities estimate that he defrauded investors out of as much as $65 billion.


Also See: Prison Rules May Bar Bernie From Attending Son's Funeral


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ckdiamondmom

Stephanie Madoff Morgan
I don't care if you live under the name Madoff or your new last name Morgan you are greedy! No sympathy for thieves!

December 14 2010 at 5:42 PM Report abuse rate up rate down Reply
ckdiamondmom

If Mark Madoff had any remorse he would have sold all of his belongings and donated the money to the victims. Unfortunatly he and his wife decided to keep living their fancy lifestyle in one of their $6,000,000 homes,now she gets to raise her kids by herself. (good luck explaing that to your children when they grow up you greedy rotten person) I hope the Trustee sues the entire Madoff family until they are homeless and living on the side of the road! NOT ONE family member ever came forward and sold their belongings to repay thoses they have all had fun living off of for so many years. Guilt drove him to suicide and he could have found work had he comne clean and started over. I hope old Bernie lives another 40 years in his cold prison cell.

December 14 2010 at 5:32 PM Report abuse rate up rate down Reply
cougher2004

enough is enough the man is dead leaves a wife and 2 children. their lives are sinned forever.

December 13 2010 at 1:36 PM Report abuse -2 rate up rate down Reply
jaxprime1

Well heck. Just because Mark Madoff is dead - we would not want any of those starving litigation attorneys to lose any income or anything would we ?

December 13 2010 at 10:38 AM Report abuse rate up rate down Reply
1 reply to jaxprime1's comment
jtfee

Ah, carrion complains about vultures. Why should Madoff cronies (you?) and heirs get to keep the ill-gotten gains? The lawyers wouldn't be there if there was nothing to be had.

December 13 2010 at 11:02 AM Report abuse +1 rate up rate down Reply
CGALLAGHER

Great lets prop his body up in a cell next to his father**at tax payers expence

December 13 2010 at 10:01 AM Report abuse +3 rate up rate down Reply