Tuesday, February 9, 2010

Stash of Bernie Madoff papers found tucked away in Queens warehouse

Madoff ScandalMillions of documents that might yield the truth behind Bernie Madoff’s massive Ponzi scheme have been yellowing for years in a Queens warehouse, sources said.

The East Elmhurst building was used to store old records from Madoff’s investment firm. Investigators have been there sifting through files for possible evidence, a government official told The Associated Press.

The 70-year-old former Nasdaq chairman has been under house arrest in his $7 million apartment since his arrest in November.

Meanwhile, a former Madoff employee said Wednesday he got stuck with a $58,000 bill for a 2009 Mercedes because his boss refused to turn over financial information about his troubled securities firm to a Long Island dealer.

Craig Kugel says Madoff’s brother Peter forced him to sign the lease for the Mercedes S500-4 in October because Madoff needed the wheels right away.

The car was returned to Rallye Motors in Roslyn, L.I., on Dec. 31, 2008.

Kugel says Peter Madoff told him to sign the lease because “the new car was immediately needed by Bernard Madoff.”

On Jan. 15, Kugel received a default notice on the lease, informing him he still owed $58,212 in payments, according to court papers filed in Federal Bankruptcy Court in Manhattan Wednesday.

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