Marshals Seize Ruth Madoff's Penthouse

Victims of white-collar criminals deprived of millions

(NEWSER) - The head of a US Marshals Service unit sold off millions in assets forfeited from white-collar criminals—including some seized from Bernie Madoff’s family—at a deep discount to his “business contacts,” swindling crime victims out of a pile of money, according to a whistle-blower lawsuit from a former federal agent and public accountant. According to the lawsuit, which was spotted by the New York Times , Leonard Briskman sold items without public notice, didn't seek multiple buyers, assessed the value of certain items himself, and maintained a secret bank account. More»

With $125K to spend yearly, time to trade in the pair of Mercedes

(NEWSER) - With just $2.5 million at her disposal as her husband heads to jail, Ruth Madoff won't exactly be sentenced to penury, but she'll have to cut her annual expenses to the low six figures if she wants it to last her lifetime, reports Brett Arends of the Wall Street Journal. She should start by trading the two Mercedes in for a SmartCar, and finding a $3,500-a-month rental apartment—modest by Manhattan standards. Or, better, she could move to Florida—farther inland than the Palm Beach spread she's lost—where her dollars will go farther. More»

(NEWSER) - Investigators have only recovered $1.2 billion of the $13.2 billion bilked from investors by Bernard Madoff since 1995, reports the Wall Street Journal. Eligible victims may be compensated up to $500,000 by the Securities Investor Protection Corp., but the rest will have to come from whatever investigators can find. Trustees say Madoff hasn't provided "meaningful cooperation" to help them locate the vanished loot. More»

Ponzi schemer's wife blames paps, of all people, for ruining her life

(NEWSER) - Ruth Madoff’s life has hit a new low—literally. It's subterranean: The New York Post spotted her on the subway yesterday, seated directly underneath an ad promoting 99-cent cellphones. The disgraced financier's wife, with gray-streaked hair and distinctly unfashionable attire, was not happy with the photographer, asking, “Are you having fun embarrassing me—and ruining my life?” More»

Disowned by sons, Bernie's wife gets cold shoulder in NYC

(NEWSER) - Behind every disgraced financier is a disgraced wife, but the public reaction to Ruth Madoff has been especially withering, Lynnley Browning writes in the New York Times. While the wives of other swindlers have reinvented themselves, Mrs. Madoff—scorned by her hairdresser, florist, and sons—has not tried to restore her image. “She’s perceived as the succubus to Bernie’s incubus,” said one observer. More»