Where did Ruth Madoff keep her money? In the most miraculously consistent and safe miracle fund in the history of man?
Of course not.
She had her money in munis:
WSJ: In addition to the $7 million penthouse on Manhattan’s Upper East Side, Ruth Madoff holds some $45 million in municipal bonds at Cohmad Securities Corp., a brokerage firm partially owned by Bernard L. Madoff, according to the filing. She also holds $17 million at Wachovia Bank, according to the filing. She withdrew $15.5 million from Cohmad shortly before Mr. Madoff was arrested, on Dec. 11.
And we don’t suppose the timing of that $16 million withdrawal means anything.
(Where did that money go, by the way? To get at Ruth’s money, prosecutors have to prove that she was involved in the fraud or that the money came from the fraud. The latter is easy–of course it did. The former is presumably helped by the fact that she withdrew the money just before Bernie confessed. Hard to believe that was a coincidence.
And let’s assume that Ruth had no idea where her money was invested, that Bernie handled everything. Well, then the money was directly tied to the fraud. Because if Bernie hadn’t known he was defrauding people, that money would have been in his fund along with all the other money he vaporized.)