Madoff boys agree to asset freeze. I’m sure Hoops is an understanding sort of girl, but you can’t do much Seychelles fly fishing on five hundred bucks a month.
Feb. 5 (Bloomberg) – Andrew and Mark Madoff, whose father Bernard is serving 150 years in prison for the largest-ever Ponzi scheme, agreed to restrict movement of their own personal assets, not incur debt beyond $1,000 and give a monthly accounting of their expenses.
Peter and Shana Madoff Swanson, Bernard’s brother and niece, signed similar agreements with the trustee liquidating the con man’s estate, Irving Picard, according to documents filed today in U.S. Bankruptcy Court in Manhattan.
Picard, who is unwinding Madoff’s defunct investment firm and gathering assets to help pay customers, sued Andrew, Mark, Peter and Shana in October, claiming they spent almost $199 million of victims’ money and treated the investment firm as their personal bank.
The Madoffs said in court papers that they deny Picard’s allegations and dispute his right to restrict their assets. They are consenting to the asset freeze to avoid “the potential costs and expenses of the instant dispute,” which could prove “substantial,” according to the filings.
The asset restrictions prevent the Madoffs and their representatives from selling, leveraging, wasting or moving all their property that is worth more than $1,000, “except for wearing personal clothing and jewelry in the normal course.” The must also take “reasonable” steps to preserve the value of their possessions, according to the filings.
In addition, they agreed to disclose their finances to Picard within 30 days. Their monthly accounting of expenses requires them to document all items costing more than $500.
UPDATE: Pappa Bernie’s NYC penthouse is reported under contract. All that’s left to get rid of is the Florida property, and that’s going to take awhile.