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NEW YORK (Reuters) - U.S. prosecutors stepped up the pressure on Bernard Madoff's family on Tuesday, signaling their intent to ask for $31.5 million from loans to his sons and $2.6 million worth of his wife's jewelry.
wife, Ruth, will be asked to surrender their interests in more than a dozen businesses and partnerships, federal prosecutors said.
Prosecutors, who on March 15 said they planned to seize real estate, cash and bonds from the couple, filed another document today listing new assets they seek to seize. The assets include the Madoffs’ interest in Sterling Equity Partners, more than $30 million in loans owed to them by their children, jewelry and watches. Bloomberg News
This should be interesting...like a three ring circus. I am still waiting for this whole thing to blow the SEC wide open. The SEC was informed that evidence existed to prove Madoff to be a fraud. Submission was made to the SEC November 7th, 2005; evidence that Madoff was likely running a fraudulent operation.
Can Ruth keep the Penthouse?
It would be fairly easy to charge Mr. Madoff with a RICO violation under Section 1962(c), which requires proof that he conducted an enterprise, like his investment advisory business, through a pattern of mail and wire fraud. The mailing of falsified account statements and the receipt of customer wire transfers over the years that he operated the Ponzi scheme would establish a RICO violation in fairly short order.
If he were convicted under RICO, the government could then seek the forfeiture of all proceeds of his criminal activity. One might think that giving the property away or putting it in his wife’s name might insulate Mr. Madoff from the forfeiture provision, but that is not necessarily the case.
Friehling operated the Friehling & Horowitz accounting firm with his father-in-law, Jerome Horowitz, a former outside accountant for Madoff who retired in the 1990s and moved to Palm Beach Gardens, Florida. The firm operated out of a 550- square foot space in New City, a northern suburb of New York City in Rockland County. Friehling surrendered today in Manhattan federal court.