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Archive for Sunday, June 28, 2009

Madoff ordered to forfeit $171 billion

June 28, 2009

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— Bernard Madoff would be stripped of all his possessions under a $171 billion forfeiture order handed down only days before prosecutors seek to put the disgraced financier away in prison for the rest of his life.

U.S. District Judge Denny Chin entered the preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats.

The forfeiture represents the total amount that could be connected to Madoff’s fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.

A call to Madoff’s lawyer, Ira Sorkin, after hours Friday was not immediately returned. In a court filing in March, Sorkin said the government’s forfeiture demand of $177 billion was “grossly overstated — and misleading — even for a case of this magnitude.”

The 71-year-old Madoff pleaded guilty in March to charges that his exclusive investment advisory business was actually a massive Ponzi scheme. Federal prosecutors say Madoff orchestrated perhaps the largest financial swindle in history.

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