Madoff to Appeal Bail, Net Worth Revealed |
Date: Monday, March 16, 2009
Author: Reuters.com
Lawyers for jailed swindler Bernard Madoff
argued for his release pending sentencing and a list of assets put he
and his wife's net worth between $823 million and $826 million,
according to court papers filed on Friday [March 13].
Mr. Madoff, 70, was jailed on Thursday [march 12] after pleading
guilty to running the biggest investment fraud in Wall Street history
that drew in as much as $65 billion over 20 years Previous Reuters Story.
His sentencing on 11 criminal charges is scheduled for June 16, when he could be imprisoned for the rest of his life.
A three-judge panel in the U.S. Court of Appeals for the Second Circuit
in New York will hear oral arguments on March 19 on two motions by Mr.
Madoff's lawyers.
Court papers filed on Friday revealed the list of assets that Mr.
Madoff provided on Dec. 31 to the U.S. Securities and Exchange
Commission, which brought civil charges against the former Nasdaq stock
market chairman. The net value of Mr. Madoff's ownership in his
business, Bernard L. Madoff Investment Securities LLC was $700 million,
according to the list. It put the net worth of Bernard Madoff and Ruth
Madoff at between $823 million and $826 million.
Mr. Madoff's lawyer declined comment on the asset list, as did Peter Chavkin, a lawyer for Ruth Madoff.
Most of the assets listed were in Ruth Madoff's name. Properties in
Manhattan, Palm Beach, Florida, Antibes and France amounting to $19
million are in her name. The couple jointly owned a $3 million property
on New York's Long Island.
In a court filing in early March, their lawyers said $69 million in
property and accounts belonged to her and was unrelated to the fraud,
including the $7 million apartment where he was held under house arrest
until Thursday.
Asset Freeze
Mr. Madoff's business and personal assets were frozen following
his Dec. 11 arrest. A court-appointed trustee winding down the firm
said last month he recovered about $946.4 million for former customers.
The asset list confirmed some of the properties and valuables such as
jewelry and cars owned by the Madoffs, who have been married for nearly
50 years. The list showed legal fees of $100,000.
A yacht called "Bull" in France valued at $7 million is in Ruth
Madoff's name. A Rybovich fishing boat, also called "Bull" in Palm
Beach, Florida, valued at $2.2 million belonged to Bernard Madoff.
Furniture, goods and fine art in his four residences, plus his office,
total $9.9 million. A Steinway piano in their $7 million New York
apartment is valued at $39,000 and, also in her name, is $65,000 in
silverware, according to the list.
In summary, the list shows $22 million in real estate, $17 million in
cash at Wachovia bank in Ruth Madoff's name, and almost $10 million in
furniture, goods and fine art spread across residences and the office.
There is also $45 million in municipal bonds listed as belonging to
Ruth Madoff at Cohmad Securities, a brokerage partly owned by Bernard
Madoff, and a $12 million interest in a company charter aircraft.
Mr. Madoff's new surroundings in a small cell at the Metropolitan
Correctional Center in Manhattan across the street from the federal
courthouse where he pleaded guilty, is a far cry from the opulent
lifestyle reflected in the asset list.
In the appeal, one motion aims to suspend an order made at Thursday's
plea proceeding by U.S. District Judge Denny Chin to revoke Mr.
Madoff's $10 million bail. The panel will also hear a motion from the
lawyers to reinstate his bail conditions.
"The District Court erroneously failed to release Mr. Madoff because
the evidence clearly shows that Mr. Madoff is not a flight risk and
does not pose a threat to the community," according to a court
document.
It said Mr. Madoff does not have the means to flee.
The lawyers argued Mr. Madoff needs to be released so he could
contribute to resolving a dispute over restitution and/or forfeiture.
"Mr. Madoff's contribution to this effort will be severely hampered, if
not altogether eliminated, if he is remanded," the lawyers said in the
filing with the appeals court. They said Mr. Madoff "was the only
person responsible for the crimes and, as a result, is the only person
with the knowledge needed to decipher the relevant records."
By Grant McCool and Edith Honan
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