Madoff Victims Peddle Jewels to Pay Bills

Brokers report heavy traffic in heirlooms, other baubles, to recoup losses in investment scandal

By Rebecca Smith Hurd, Newser User

Posted Jan 5, 2009 12:15 PM CST

(Newser) – Victims of investment scammer Bernard Madoff are selling off the family jewels—and sometimes their houses, too—to stay solvent. Jewelry buyers report steady traffic since the scandal, from a Beverly Hills woman sacrificing a 9-carat diamond to pay her bills to Palm Beach residents unloading more than $250,000 in a single day, the New Yorker notes.

The sale of heirlooms can prove as traumatic as being swindled. “We become the priest and the rabbi, the psychiatrist,” said one bauble broker. “Most never thought about having to come up with money to pay regular expenses. I say, ‘Be glad you had these things, and be glad you had great taste, so now you can sell it in order to continue.’ ”

[Images (3)]

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Pawnbroker Levi Touger looks over jewelry that a couple has brought into his shop. Royal Pawn & Jewelry has made loans to some well-heeled Palm Beach investors caught in the $50 billion Madoff scam. (AP Photo/Allen G. Breed)

The judge in Bernard Madoff's fraud case recently set new conditions for his bail, including a curfew and ankle-monitoring bracelet for the disgraced investor. (AP Photo/Seth Wenig)

Some investors who lost money in Bernard Madoff's $50 billion scam are selling their valuables to pay their everyday bills. (AP Photo/Alastair Grant)

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It’s like a member of
the family has died, and
its name is Money.
- A guest at The Breakers in Palm Beach, referring to Madoff victims and others whose stock portfolios have taken a dive

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Madoff Victims Peddle Jewels to Pay Bills