As Bernard Madoff Arrest Loomed, His Wife Withdrew $15.5M, Regulator Says
On the day before Bernard Madoff was to be arrested in a federal securities fraud case, in the midst of bombshell accusations that he had masterminded a record-breaking $50 billion Ponzi scheme, his wife withdrew $10 million from a brokerage account at a firm he co-owned, a top Massachusetts securities regulator says in a filing.
“Ruth Madoff, 67, removed $5.5 million on Nov. 25 and the rest on Dec. 10 from New York-based Cohmad Securities Corp., according to a complaint filed today by Secretary of the Commonwealth William Galvin,” reports Bloomberg. He was arrested Dec. 11.
Meanwhile, federal prosecutions have gotten a 30-day extension of a deadline to indict Bernard Madoff, the news agency reports. The new deadline is March 13.
Galvin is trying to revoke Cohmad’s state securities registration, arguing that it is intertwined with Madoff’s operation and uncooperative.
His filing should be interesting to prosecutors, but is unlikely to make any difference to investors seeking to recover money they gave to Bernard Madoff, says attorney Philip Bentley of Kramer Levin Naftalis & Frankel. He is representing plaintiffs in Madoff-related litigation.
As discussed in an earlier New York Times article, Bernard Madoff was released on $10 million bail in December and is being held under house arrest in his luxury Manhattan apartment, under the watch of private security guards that his wife is paying for. She has not been charged in the case.
Additional coverage:
ABAJournal.com: “Some Madoff Investors Seek US Bailout; ‘Clawback’ Defenses Outlined”
Boston Globe: “Galvin seeks to shut down firm with Madoff ties”
