March 17th, 2010
03:05 AM ET

Madoff relatives seek to dismiss $199 million lawsuit

Family members of Ponzi schemer Bernard Madoff have filed motions to dismiss a $199 million lawsuit leveled against them last fall.

The three dismissal motions came Monday from four Madoffs: one from Madoff's brother, Peter Madoff; one from his sons Andrew and Mark Madoff; and one from his niece, Shana Madoff.  All four held senior positions at Bernard L. Madoff Investment Securities.

In the court documents, lawyers for the Madoffs say their clients have received undue blame simply because they share a last name with the perpetrator of the largest fraud in Wall Street history.  "Allegations are painted with the broadest of strokes in an effort to sweep anyone with the Madoff name - regardless of fault or actual involvement - within the fraudulent investment advisory business of BLMIS," Shana Madoff's  attorneys wrote.

Similarly, Peter Madoff's lawyers try to distance him from his notorious sibling. "Peter Madoff is not Bernard Madoff," their motion opens.  And Andrew and Mark Madoff's lawyers deny the two were any more aware of their father's long-running fraud than the many other clients he duped.

"They rank among [Bernard's] numerous victims," the lawyers wrote. The sons' lawyers further say that the two were heroes of sorts, promptly blowing the whistle on their father, thus thwarting the loss of even more Madoff client money.  " ... they reported his crimes to the authorities, and thereby prevented
the dissipation of $170 million more in customer funds," the sons' attorneys wrote.

In October 2009, Irving Picard, the court-appointed trustee tasked with liquidating Bernard Madoff's business, sued Peter, Andrew, Mark and Shana Madoff for $199 million.

In the suit, Picard says that the Madoff firm "operated as if it were the family piggy bank."

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Filed under: Justice • U.S.
soundoff (31 Responses)
  1. Jay

    Not only should the lawsuit stand but they should all be thrown in jail as well.

    There is absolutely no way they did not know what was going on or that they didn't live large from it.

    March 17, 2010 at 11:17 am | Report abuse |
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