What Did the Madoff Family Know in 2006?
When the Madoff story first broke, we noted that it “smelled funny” that Bernie was working alone.
Now, CBS News suggests that the Madoff family made estate moves which suggest they were anticipating property forfeiture. (Video is here)
Excerpt:
CBS News has learned that Madoff and his brother, along with their wives, took steps two years ago — around the time that federal regulators started probing Madoff’s business activities — that could help prevent their Florida homes from being taken away from them, something possible under Florida state law.
“Florida has very unique laws and has been described by some as a debtor’s haven,” said John Pankauski, a Florida estate attorney. “People who may want to protect their property will seek the protection of Florida laws.”
Florida’s “homestead” laws, which are unlike what any other state has, in part allow homeowners facing legal judgments (or other financial issues) to protect their primary residence fully – keeping it out of the hands of potential creditors. One of the key steps in qualifying for the home-protection is seeking “homestead exemption,” which provides homeowners with a tax break.
On May 10, 2001, Peter Madoff bought the home at 200 Algoma Road in Palm Beach, Fla., along with his wife Marion. Both were listed as owners at the time. Five years later, on Nov. 8, 2006, Peter transferred the title to Marion making her the sole legal owner of the home. A month later, on Dec. 28, 2006, Marion applied for, and soon after received, homestead exemption.
According to federal documents, during this time the Securities and Exchange Commission was in the middle of what turned out to be a two year investigation into Madoff’s company, Bernard L. Madoff Investment Securities LLC, for “fraudulent activities.” The investigation began on Jan. 6, 2006.
“Why are you transferring assets to your spouse? What caused that transfer? If you are transferring assets for estate planning purposes why wasn’t it done before?” said Pankauski.
While its not conclusive, it certainly is somewhat suspicious in its timing . . .
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Source:
Double Trouble for Madoffs?
Armen Keteyian
CBS, January 30, 2009
http://www.cbsnews.com/stories/2009/01/30/cbsnews_investigates/main4765109.shtml?source=RSSattr=HOME_4765109
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January 31st, 2009 at 11:58 am
Does he still get that exemeption if they did it while committing felonies?
January 31st, 2009 at 11:58 am
This is purely circumstantial. Family values have been ridiculed by the “opposition” and the liberal media for eight years …you think they’re going to let up now, just because they “won?”
No way.
Families just need a little competition, less regulation, …and they don’t need tax cuts for the young’uns who don’t pay “income taxes.” Otherwise there’d be no need for any of this alleged maneuvering of alleged assets.
January 31st, 2009 at 12:10 pm
“Certainly somewhat suspicious in its timing…?”
Would you say that if these were the Sopranos?
It’s really the same thing.
January 31st, 2009 at 2:19 pm
@CJ Exactly!
But, they better hurry and serve justice before he dies. Maybe Madoff and the other bad Bernie can share buck beds in the near future.
January 31st, 2009 at 3:46 pm
I just received my FL Homestead Exemption renewal paper work; I already have it as Mrs. Madoof appears to have obtained.
It states in part:
“There are severe penalties for falsely claiming Property Tax Exemptions.”
“You are no longer eligible for Homestead Exemption if:
2. The residential unit is no longer your permanent home.
3. You are no longer a permanent resident of Florida.”
As far as I know the Madoffs live in NYC – it’s hard to see how FL is their permanent home or they are residents of the state. I can scan and post if anyone is interested.
January 31st, 2009 at 5:35 pm
GRV305 is right.
The Florida dodge won’t work. However, I’m sure Madoff is certainly not limiting his asset hiding policies to the continental USA.
January 31st, 2009 at 8:41 pm
“during this time the Securities and Exchange Commission was in the middle of what turned out to be a two year investigation into Madoff’s company”
God those SEC guys “serve” a purpose! What are we paying those clowns?
February 1st, 2009 at 8:20 am
The trustee will get all of the family’s real estate assets. Bernie’s wife supposedly had no source of income other than from Bernie – so the realty is all the fruit of the ponzi scheme.
Also, you cannot shelter assets through transfers made AFTER there is a potential claim against them. Asset protection needs to be done well in advance to be upheld. If it’s not, it’s just considered a fraudulent conveyance that will be undone in the Courts (particularly under this set of facts).
And, as noted, these folks (along with Dick Fuld) are NY residents so they’ll have a hard time claiming protection under the Florida exemption.
And, of course, there are billions hidden outside the country. But the family is going to have eyes watching them 24/7, so getting those assets and spending them will be a challenge.
February 2nd, 2009 at 12:20 pm
There is something really wrong with our legal system when it allows a criminal to protect an asset like a home which they were able to pay for by fraud.
I don’t care if it’s some crooks main residence.
That asshole and his wife should have these assets striped from them.
Maintaining and paying the taxes on a home like that (and Madoffs NY town home) costs a significant amount of money each year. Where is that money coming from???