Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Madoff kin and former workers sued for $69 million

By Rich Barbieri, deputy managing editor


NEW YORK (CNNMoney.com) -- The court-appointed trustee trying to recover money stolen by Bernard Madoff has sued the Ponzi con's relatives and former employees in a bid for $69 million.

Trustee Irving Picard said he brought 40 lawsuits on Friday in U.S. Bankruptcy Court in Manhattan. He filed 22 suits against relatives of Madoff and his wife, Ruth. The other 18 cases were filed against former employees of Madoff's company.

The defendants had among them 66 accounts through which the $69 million was allegedly diverted to Madoff and others, according to Picard.

"The [lawsuits] are a continuation of our recovery efforts against the Madoff relatives and employees who were closest to the center of the fraud and who were, in many cases, among those who benefited most from the Ponzi scheme," said Picard.

Earlier last week, Picard sued UBS (UBS) AG for $2 billion, accusing the Swiss financial firm of participating in Madoff's Ponzi scheme.

As of Nov. 19, in the most recent tally available, the trustee had approved a total of 2,305 claims from victims, totaling nearly $5.8 billion in damages.

Madoff, 72, pleaded guilty in March 2009 to 11 counts related to running the largest Ponzi scheme in history and was sentenced to 150 years. He is incarcerated at a medium security federal prison in Butner, N.C.

Using his investment firm as a front, Madoff claimed to be investing his clients' money. He kept the fraud going by using deposits from new clients to provide so-called returns to more mature clients. But in reality, he was stealing the money and there were no returns.

-- CNN's Miguel Susana contributed to this report. To top of page

Index Last Change % Change
Dow 22,334.10 -25.13 -0.11%
Nasdaq 6,417.69 -5.00 -0.08%
S&P 500 2,499.30 -1.30 -0.05%
Treasuries 2.26 -0.02 -0.75%
Data as of 11:44am ET
Company Price Change % Change
Advanced Micro Devic... 13.22 -0.19 -1.38%
Bank of America Corp... 24.93 -0.23 -0.91%
Apple Inc 150.83 -2.56 -1.67%
General Electric Co 24.90 0.14 0.59%
Ford Motor Co 11.82 0.10 0.90%
Data as of 11:28am ET
Sponsors

Sections

Proposing big tax cuts is much easier than figuring out how to pay for it all. Offsetting the cost of cuts will be one of the biggest hurdles for Republicans. More

London's transport authority said Friday that will not renew Uber's license, saying the company is not "fit and proper." More

Paying yourself first means setting aside money for your future goals right away, before spending the rest on non-essentials. More