Tuesday, March 9, 2010

Judge orders Madoffs to forfeit $170B; prosecutors want 150 yrs for Bernie

84174070HM001_BERNARD_MADOFFBernie Madoff will soon be in the big house and his wife Ruth will soon be out of the penthouse.

U.S. District Judge Denny Chin Friday signed an order forcing the Madoffs to forfeit $170 billion to compensate victims of his $65 billion scam, Acting U.S. Attorney Lev Dassin said.

So the Madoffs’ $7 million Manhattan apartment, $3.3 million Montauk beach house, $9.3 million Palm Beach mansion, their three boats and even their $39,000 Steinway piano will go up for sale.

The $170 billion represents the total amount of money that could be connected to the fraud, not the amount stolen or lost.

Not only will Madoff’s wife, Ruth, 68, have to move out of her luxury Manhattan digs, but she’ll also have to give up $80 million in assets, according to court documents.

Ruth, who hasn’t spoken in public about her husband’s financial crimes, would be left with $2.5 million in cash.

The documents agreeing to the sales were signed by Madoff’s lawyer Ira Lee Sorkin and Peter Chavkin, lawyer for Ruth Madoff.

Meanwhile, federal prosecutors are asking Chin to sentence Madoff to 150 years in prison.

“The sheer scale of the fraud calls for severe punishment,” the prosecutors wrote in response to a defense motion seeking a 12-year term.

Any lesser sentence, prosecutors said, should still be long enough to send a forceful message and “assure that Madoff will remain in prison for life.”

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