Madoffs Worth $823 Million, a Filing Says

Madoffs Worth $823 Million, a Filing Says

By ZACHERY KOUWE
Published: March 13, 2009
Newly filed court documents show that Bernard L. Madoff, who pleaded guilty on Thursday to running a worldwide Ponzi scheme, and his wife lived lavishly, owning several boats, homes and jewelry worth a total of more than $823 million at the end of last year.

The documents were filed by Mr. Madoff’s lawyers with the United States Court of Appeals for the Second Circuit as part of a request to free him from prison before his sentencing in June. In the calculation of his net worth, $700 million is attributed to his ownership stake in his market-making business.

That business has been seized by the trustee overseeing the liquidation of the firm and is being auctioned with the help of the investment bank Lazard. The trustee, Irving H. Picard, said last month that potential buyers had expressed interest and that a preliminary deal to sell the firm could be reached soon.

The calculation of Mr. Madoff’s net worth came from a financial statement that was filed in a civil suit brought by the Securities and Exchange Commission.

According to the document, the Madoffs also jointly owned a house on Long Island worth $3 million. The homes contain artwork, furniture and other items worth about $10 million.

The Madoffs incurred expenses of $346,757 a month for insurance premiums, maintenance charges and boat storage. Monthly charges for a housekeeper at their Manhattan apartment ran about $2,860 while a boat captain for Mr. Madoff’s yacht was paid $5,250 a month.

The document also shows that Mr. Madoff’s wife, Ruth, owned nearly all of their real estate in New York, Florida and France, valued at $19 million. She also has an outstanding loan to her two sons, Andrew and Mark, “between $4 and $7 million,” which they used to buy property in Nantucket and New York.

Numerous other assets are in Mrs. Madoff’s name, including two Mercedes automobiles and a Volkswagen, $2.6 million in jewelry, a boat in Long Island named Sitting Bull and valued at $320,000 and a boat in Florida named Little Bull, worth $25,000. Through her company, listed as the Yacht Bull, Mrs. Madoff owned a yacht and a boat slip in France valued at $8.5 million.

The couple also owned a 50 percent interest in an aircraft valued at $12 million, a $39,000 Steinway piano and silverware at their Manhattan apartment valued at $65,000.

The couple reported $265,000 in liabilities, including $100,000 in credit card debt and $151,000 in real estate taxes, which have been paid.