Madoff’s Wife Withdrew $15.5 Million, State Claims

Madoff’s Wife Withdrew $15.5 Million, State Claims - 2/11/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Madoff’s Wife Withdrew $15.5 Million, State Claims
Christopher Condon

Bloomberg. February 11, 2009
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EXCERPT: Bernard Madoff’s wife withdrew $15.5 million from a brokerage account at a firm co-owned by her husband late last year, including $10 million on the eve of his arrest, Massachusetts securities regulators said. Ruth Madoff removed $5.5 million on Nov. 25 and the rest on Dec. 10. from New York-based Cohmad Securities Corp., according to a complaint filed today by Secretary of the Commonwealth William Galvin. Bernard Madoff was arrested Dec. 11 for allegedly operating a $50 billion Ponzi scheme. Galvin, the state’s top securities regulator, said evidence of the withdrawals supports his claim that Cohmad and Bernard L. Madoff Investment Securities LLC are “so intertwined that they could be viewed as a common enterprise.” He is seeking to revoke Cohmad’s state securities registration for failing to fully cooperate with his investigation about its relationship with Madoff. “We cannot tolerate licensed securities dealers who refuse to assist in the detection and prosecution of fraud,” Galvin said in a statement today. […] Cohmad, based in New York, was founded by Madoff and Maurice Cohn, chairman and chief executive officer of the company, using portions of each man’s name to form the firm’s title. The statement identified Madoff’s brother, Peter Madoff as another owner and Cohn’s brother, Milton Cohn, as a director. Cohmad is named in Galvin’s complaint as a “feeder fund” to Madoff’s investment firm. Cohmad earned more than $67 million over eight years sending investors’ money to Madoff, the complaint said. Galvin called the two firms “deeply intertwined.” Documents showing Ruth Madoff’s withdrawals from a Cohmad account were attached as exhibits to the complaint. […] Madoff Investments made monthly payments to Cohmad over eight years “that appear to add up to $67 million,” the complaint said. The payments made up more than 84 percent of Cohmad’s total income, the complaint said.

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