Madoff firm “piggy bank” for family, inner circle

NEW YORK, (Reuters) – Swindler Bernard Madoff’s firm  was a “piggy bank” that enriched his extended family, supported  their lavish lifestyle and paid for the house or personal  expenses of at least two loyal longtime employees, according to  court documents.

The papers, filed on Tuesday night by the court-appointed  trustee winding down the firm to recover assets for defrauded  customers worldwide, provide more details about the $65 billion  fraud to which Madoff pleaded guilty on March 12.

For decades “Bernard L. Madoff Investment Securities  (BLMIS) was Bernie Madoff and Bernie Madoff was BLMIS, each the  alter ego of the other” lawyers for trustee Irving Picard said  in the filing in U.S. Bankruptcy Court in New York.

“This entanglement permitted Madoff, at his whim and  desire, to engage in innumerable financial transactions wherein  he essentially used BLMIS as his personal ‘piggy bank’ having  BLMIS pay for his lavish lifestyle and that of his family.

MORE IN Archives


Reader Comments »

The Comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness.
  • We reserve the right to edit/delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.
  • We moderate ALL comments, so your comment will not be published until it has been reviewed by a moderator.
  • Our Comments are powered by the Disqus service. You may comment as a Guest by entering your comment and selecting "Post as". Optionally, you may sign-in using your Facebook, Yahoo or Twitter Accounts.

    Disqus' Privacy Policy can be read here. Please read our Terms of Service and Privacy Policy.