All In The Family: Madoff's mum Had Her Own SEC Trouble

Fortune breaks open a whole new angle on the Madoff story:

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. Read the whole thing >

So is this a multi-generational fraud? The article goes onto say that none of Madoff’s friends recall his mum having been in the business, but that his dad was a stockbroker of sorts.

You can read the SEC’s announcement, that Sylvia Madoff withdrew from the business below.

Sylviamadoff Sec2

View SlideShare document or Upload your own. More to come.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.