Madoff Turned in by Sons After Confessing $50 Billion Fraud

(Bloomberg) — Bernard Madoff‘s sons turned him in to U.S. authorities after he confessed to them that his investment advisory business was “a giant Ponzi scheme” that cost clients $50 billion, a lawyer for the brothers said.

Mark and Andrew Madoff contacted authorities on the evening of Dec. 10 after their father admitted a fraud that led to his arrest yesterday by the FBI in Manhattan, according to a statement today by attorney Martin Flumenbaum, their lawyer. The brothers, who worked for their father, had no prior knowledge of the fraud, Flumenbaum said.

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Madoff was charged yesterday with securities fraud, and the SEC filed a civil lawsuit against him and his firm. He appeared yesterday in federal court in New York and is free on bail after posting a $10 million bond yesterday secured by his Manhattan apartment and guaranteed by his wife.

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Dimond Kaplan & Rothstein, P.A. to Represent Madoff Investors

Miami, Florida-based law firm Dimond Kaplan & Rothstein, P.A. (/) represents Madoff investors, and is actively investigating avenues for the recovery of at least a portion of their investment losses. The Madoff Ponzi scheme sits dead in the center of the crossroads of Dimond Kaplan & Rothstein’s law practice, which includes representing investors who are victims of stockbroker and brokerage firm misconduct in securities arbitration and court proceedings, prosecuting claims against third parties on behalf of Ponzi-scheme victims, serving as court-appointed Securities and Exchange Commission Receivers in Ponzi-scheme matters, and even defending innocent early investors in Ponzi schemes who are sued by court-appointed receivers seeking to recover money paid out by the Ponzi scheme. Indeed, in an enforcement action brought by the Securities and Exchange Commission in connection with another Ponzi scheme, a Federal Court judge in the Southern District of Florida recently appointed Dimond Kaplan & Rothstein, P.A. partner Scott M. Dimond as the Receiver on behalf of the defrauded investors.

While numerous press reports have suggested that virtually all monies invested with Madoff have been lost, Dimond Kaplan & Rothstein already has uncovered several potential leads against solvent third parties that may be held accountable for certain losses suffered in conjunction with investments with Madoff. Those potential defendants include third-party vendors that knew or should have known of the fraud, such as accounting firms and banks, as well as investment advisors, banks, and accounting firms that negligently steered their clients into Madoff’s hedge fund. Dimond Kaplan & Rothstein, P.A. is a nationally recognized law firm with extensive experience representing investors throughout the country in investment fraud cases, including victims of Ponzi schemes. Attorneys Scott M. Dimond, Jeffrey B. Kaplan, and David A. Rothstein can be contacted at (305) 374-1920 for a free consultation.

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