We haven't heard much about the Madoff clan the past few months. That's not because the feds grew bored and decided to give up. They've been quietly assembling a case against Bernie's brother (Peter) and two sons (Andy and Mark), and may eventually charge them with tax fraud for using Bernard L. Madoff Investment Securities as their "personal piggy bank":
It looks like Andy Madoff may have figured out his next career move. Last week, the Journal reported that Bernie Madoff's youngest son was planning to get into "disaster recovery." Now word has it Andy and his girlfriend Catherine Hooper are behind a disaster management company called Black Umbrella, which "builds practical, efficient disaster plans for individuals, couples and families." Just so you're aware, the types of disasters Black Umbrella claims to be equipped to handle are along the lines of Hurricane Katrina and 9/11. The disaster of waking up to find that someone you'd always trusted stole your life savings? You'll have to look elsewhere for help on that one. [Dealbreaker]
When Irv Picard makes a promise, he keeps it. A few days ago, the trustee overseeing the Madoff mess said he planned to file a lawsuit against several other members of the Madoff clan—including Bernie's brother, two sons, and niece—for treating the family firm like a "piggy bank." And today he delivered, filing an action in federal bankruptcy court seeking the return of $199 million.
The Madoff show goes on. In an interview that aired on last night's 60 Minutes, court-appointed trustee Irving Picard said he plans to file a civil suit against Bernie sons, Mark and Andy, this week which will seek the return of $198 million. And just so no one in the immediate family feels left out, he'll be suing Bernie's brother Peter and niece Shana, too. [Dealbook]
Subway-riding Ruth Madoff will not be attending her husband's sentencing on Monday, reports ABC News. (Nor will his two sons be there, although that was to be expected given they maintain they haven't had any contact with him since his arrest.) Whether Bernie himself will express remorse is anyone's guess, although the cop who was assigned to guard him during his arrest—and who appears on 20/20 tonight—isn't expecting him a stream of tears and apologies. "He did not seem like the most contrite person I've ever met." [ABC News]
Bernie Madoff has been sued by a long list of former investors. Now his sons will get to share in the excitement. Two former employees of Bernard L. Madoff Securities have filed suit against Andy and Mark Madoff and claim the two brothers were well aware of the $65 billion Ponzi scheme and made efforts to "cloak the massive fraud of the Madoff investment advisory business." Richard Stahl and Reed Abend are now demanding $2 million in deferred compensation from the Madoff boys. And while it's unlikely the sons could come up with that kind of cash even if they wanted to, Abend, at least, could always resort to extra-legal justice if he's forced to. He's the same ex-employee who allegedly shoved and punched Andy Madoff when he ran into him on the street back in May. [NYDN]
Dealbreaker reports that Andy Madoff was out and about recently when he bumped into a former employee of his dad's firm. The encounter was not a friendly one—presumably having "Bernard L. Madoff Investment Securities LLC" on your resume in this job market is not all that much fun—and lots of shoving and punching ensued, according to witnesses. Hopefully the next time something like this happens—such as, say, when Alexandra Penney runs into Ruth Madoff while they're both shopping at Neiman Marcus—someone has a camera handy. [Dealbreaker]
