Madoff’s mother tangled with the feds - Profiling Bernie the Con Man

Madoff’s mother tangled with the feds
Posted on Fri, Jan 16th, 2009 | Categories: Business |
NEW YORK (Fortune) -- Accused Ponzi schemer Bernard Madoff was not the first person in his close-knit family to run afoul of federal authorities. A broker-dealer firm registered in the name of Madoff's mother, Sylvia, was effectively forced to close by the U.S. Securities & Exchange Commission more than 40 years ago.

In August 1963, the SEC announced it was "instituting proceedings...to determine whether" 48 broker-dealers, including "Sylvia R. Madoff [doing business as] Gibraltar Securities," had "failed to file reports of their financial condition...and if so, whether their registrations should be revoked."

An SEC litigation release a month later announced hearings in the case of Madoff and many of the other firms in question.

Then, in January 1964, the SEC dismissed administrative proceedings against a number of the firms, including Madoff's, in what appeared to be a deal: No penalties if you promise to stay out of business.Then, in January 1964, the SEC dismissed administrative proceedings against a number of the firms, including Madoff's, in what appeared to be a deal: No penalties if you promise to stay out of business.

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Bernard Madoff's lawyer, Ira Sorkin, declined to comment. His brother Peter Madoff's lawyer, John "Rusty" Wing, did not respond to phone calls and questions emailed to him. But it adds yet another intriguing question in the case of a man who becomes seemingly more and more elusive.