Peter Madoff Loses Appeal To Free Assets From Court Freeze

Two pieces of news in the Madoff case today:

  • Despite all the reassurances we’ve heard over the past several months that none of the Madoff family members were accused of wrong doing, in December Peter Madoff agreed to have his assets frozen by federal authorities. He is permitted to spend only $10,000 a month. How does the guy survive?
  • A Long Island court refused to overturn a freeze on all his assets today. So now he’s down to nothing a month.

From Bloomberg:

Peter Madoff, brother of convicted fraudster Bernard Madoff, agreed with U.S. prosecutors to have some of his assets frozen in December, his lawyer said today in an unsuccessful attempt to overturn a second freeze order.

A New York appeals court today denied Peter Madoff’s request to overturn the freeze, rejecting his lawyer’s argument that the restraining order imposed by a state judge last week was “unnecessary,” “overly broad” and “totally inappropriate.” Madoff already had reached a less-restrictive agreement with federal prosecutors, the lawyer, Charles Spada, told the state appeals court in Brooklyn.

“My client can’t spend a dime, he can’t take a subway ride, he can’t buy a loaf of bread, pay his attorneys,” Spada said, asking for the state order freezing all of Madoff’s assets to be set aside. If the state freeze remains in place, Madoff may not be able to pay income taxes by April 15, Spada said.

The voluntary freeze agreed to with federal prosecutors in Manhattan on Dec. 24 allowed Madoff $10,000 a month for expenses, Spada said in court and in court papers filed today. That agreement also allowed Madoff to pay his mortgage and required him to provide prosecutors with a receipt for any purchase of more than $150.

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