The Ponzi scheme perpetrated by Bernie Madoff is back in the news. According to a court-appointed trustee, Madofff’s sons created accounts out of thin air and engineered sham loans to buy Manhattan real estate as they diverted tens of millions of dollars from their father’s firm. Per Reuters:
In an amended lawsuit against Andrew Madoff and the estate of Mark Madoff, Irving Picard, who is liquidating Bernard L. Madoff Investment Securities LLC, said the brothers' activity reflected their "sense of entitlement" to undeserved riches.
Citing testimony from Frank DiPascali, the firm's former finance chief who is cooperating with prosecutors, Picard also accused the brothers of deleting emails linking them to their father's Ponzi scheme, amid a 2005 U.S. Securities and Exchange Commission examination of the firm's finances.