Another $10M stolen by Bernard Madoff

The suit says, Bernard Madoff agreed to invest $10 million six days before he was charged with running a $50 billion Ponzi scheme. 

Rosenman Family LLC, managed by Martin Rosenman, president of Bronx-based Stuyvesant Fuel Service Corp., is suing Irving Picard, who is a trustee appointed to supervise Madoff’s business. Picard is being demanded to have no claim to the $10 million. Rosenman has announced that he spoke by phone with Madoff about investing the money and the latter told him he “could wire money” before the account opens on January 1 into a Madoff account, “where it would be held until the fund opened after the new year.”

Madoff’s company had collapsed last month after he had told his sons there was a fraud. The firm is liquidating under the Securities Investor Protection Corp. After four days, Rosenman received a confirmation from Madoff Securities telling him he’d sold short $10 million in U.S. Treasury bills that, he “never authorized.” The next day Madoff revealed the fraud to his sons. And the following day Madoff was arrested and charged of securities fraud. He is in danger of 10 years of inprisonment and a $5 million fine. 

Madoff is due in court Jan. 12, unless he is indicted before then or prosecutors and defense lawyers agree to postpone the court date. Sorkin has stated that Madoff’s company is cooperating with the government. 

Source: Reuters