June 27, 2009 in Nation/World

Ruth Madoff settles with feds

Newsday
 

NEW YORK – Ruth Madoff agreed Friday to give up her Manhattan penthouse apartment and Montauk, N.Y., home as well as pricey jewelry and other items to settle a government claim against her husband’s Ponzi scheme, court records show.

In an order signed Friday in federal district court in Manhattan, Judge Denny Chin ordered Bernard Madoff to forfeit $170 billion in assets to pay investors of his giant Ponzi scheme.

In return for settling with the government, Ruth Madoff will receive $2.5 million.

She must surrender more than $2 million in jewelry as well as the Manhattan penthouse and the home in Montauk.

In court papers filed late Friday, attorneys for the Madoffs and the government acknowledged prosecutors might not be able to show the proceeds of the Madoffs’ Ponzi scheme were used to purchase the real estate.

The documents show Bernard and Ruth Madoff have agreed with prosecutors to allow federal marshals to sell the couple’s interest in the properties.

A separate filing shows prosecutors have asked the court to impose a term of 150 years for Bernard Madoff or a “term of years that both would assure that Madoff would remain in prison for life and forcefully would promote general deterrence.”


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