Ruth Madoff Sued for $45 million

(MoneyWatch)  Trustees appointed to liquidate the business of imprisoned swindler Bernard Madoff have sued Madoff's wife, Ruth, for $45 million in alleged "fraudulent transfers" made during the past six years.

The trustee's complaint, filed in Manhattan's bankruptcy court, details 111 transactions that he maintains are recoverable under the bankruptcy code. Irving L. Picard, the Trustee appointed to liquidate the estate and recover money for investors, said in the filing that "for decades, Mrs. Madoff lived a life of splendor using the money of BLMIS's customers."

It doesn't matter whether she knew her husband was a cheat or not, Picard added. Any money she got ought to be recovered for the benefit of those who lost their savings in the scam.

"The Madoff Ponzi scheme massively enriched Mrs. Madoff," the filing said. "She received substantial transfers of money from BLMIS which belonged to the company, and ultimately, to its customers."

Peter A. Chavkin, Ruth Madoff's attorney, could not be immediately reached for comment.

Last month, Ruth Madoff agreed to forfeit all but $2.5 million of her assets, including jewelry, vacation homes and a yacht, to settle claims with the U.S. Attorney's office in Manhattan. It's not clear whether Picard believes Madoff has assets that were not subject to the settlement or if his aim is to strip her of the $2.5 million that U.S. Attorneys would otherwise let her keep. In addition to the $45 million, Picard is asking for an accounting of what Ruth Madoff did with the assets that she received.