Ruth Madoff May Lose $44 Million in Assets

Mar 16, 2011, 09:05

Ruth Madoff may be on the verge of losing nearly $45 million in asssets after a trustee liquidating Bernie and Ruth Madoff�s assets found that at least $14 million was fraudulently transferred into Ruth's bank account.

The trustee, Irving Pickard, said he obtained account records from the bank. Some of the payments in the account appeared to be interest payments on loans made to her husband�s companies. Those should have been given to the businesses, not the Madoff family, Picard said.

According to a 2009 lawsuit, Ruth Madoff�s money comes from her husband�s sham companies. Bernie Madoff orchestrated what has been called the largest Ponzi scheme in history and is serving a life sentence in federal prison.

Ruth Madoff has until the end of March to respond to Picard�s suit, which is one of 1,000 he has filed on behalf of Madoff�s investors. In all, Picard is seeking $100,000 billion from investors. Among those suits was one that named the couple�s son, Mark Madoff. Mark Madoff committed suicide in December.

Already, many of Ruth Madoff�s assets, including 14-carrat diamond earrings and a 1999 Mercedes Benz, have been seized by U.S. Marshals. Picard also named Madoff in a February lawsuit filed against the owners of the New York Mets.

Ruth Madoff is reportedly living in Palm Beach, Florida. There, she is said to bring meals in her 1996 Infiniti to people who can�t leave their homes. Her husband is imprisoned in Butner, North Carolina.

Although her attorney would not talk about this suit, Ruth Madoff has expressed shame and embarrassment about her husband�s schemes.