Madoff's Wife Could Face Legal Trouble

(CBS)  Investigative Producer Pia Malbran wrote this story for CBSNews.com.

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Ruth Madoff, the wife of disgraced money manager Bernard Madoff could face conspiracy charges if it is proven that she knew about her husband's massive Wall Street money scam and purposely tried to hide assets before he was arrested.

"I fully expect her to be named [in civil lawsuits] shortly," said Adam Rabin, a Florida attorney who represents individuals victimized by Madoff's Ponzi scheme.

New court documents released Wednesday revealed Ruth Madoff, 67, withdrew $10 million from one of her husband's company bank accounts on Dec. 10, 2008, the day before he was arrested on federal fraud charges. Two weeks earlier, on Nov. 25, 2008, she withdrew $5.5 million from the same account.

Click here to view the court documents and complaint.

"It certainly raises questions," said the Massachusetts Secretary of State William F. Galvin, who discovered the wire transactions as part of an investigation into the Boston based company Cohmad Securities which Bernard Madoff co-owns. Secretary Galvin has determined that Cohmad was an extension of Madoff's New York investment firm funneling in as much as $67 million a month from investors.

"In order to be guilty of a conspiracy [either criminal or civil] you don't have to know all the details of a scheme," said attorney Ryon McCabe, Rabin's partner and former federal prosecutor. McCabe argues that if prosecutors want to hold Ruth Madoff legally responsible "all the government would have to do is prove that she knew [about the scam] and on at least one occasion took part" by withdrawing money just before the scheme was exposed.

As of right now, Ruth Madoff is not named in the federal case against her husband. However, Rabin believes that could change. The new revelations "could be used to put pressure on her to assist with the investigation."

This is not the first move by Ruth Madoff that has raised eyebrows. A CBS News investigation that aired on Jan. 30 discovered Bernard Madoff's wife also took steps, before her husband's arrest, to protected their $9.5 million Palm Beach, Florida home from being taken away in a bankruptcy proceeding. A unique Florida "homestead" law allows some homes to be shielded from creditors. Property records, obtained exclusively by CBS News show Ruth tried to get "homestead" status in 2006 at the same time federal authorities were probing Bernard Madoff. Her initial application in 2006 was rejected. She then reapplied on September 18, 2008, less than two months before federal authorities detained her husband.

"She may have been trying to get the homestead status to protect her home from civil creditors," said Ryon.

Attorney Ira Lee Sorkin who represents both Bernard and Ruth Madoff declined to comment.
By Pia Malbran

[CraigBerkeley]

See Bigamists Among Us, Marin County Californian James K. Olson @ http://reno.broowaha.com/article.php?id=3481. Here California James K. Olson's bigamy fueled illegal trampling on a Nevada citizen's rights.

See what Gun Controller California and a lying California attorney, Gun Controller Steven T. Schoonover, and flip flopper James K. Olson did here to a Nevada citizen?s right to have a gun to protect herself after James K. Olson had broken into this Nevada citizen?s home! Gun Controllers Among Us, Marin County California Courts

Most liberal Gun Controller Marin County California has repeatedly thumbed their nose at the US Constitution, then imposed their illegal Gun Controller actions onto a Nevada citizen. What's next?

Lying California attorney, Steven T. Schoonover had the Nevada citizen served at 7:30 Thursday evening in Nevada for a 9 am the following Monday court in California and the California incompetent Gun Controller judge allowed that 1 day notice although illegal as have to be served more than 10 days before a hearing and furthermore it was to a Nevada citizen!

Three strikes you?re out lying California attorney, Gun Controller Steven T. Schoonover

http://reno.broowaha.com/article.php?id=3749
http://www.babelation.com/?q=node/1833
http://reno.broowaha.com/article.php?id=3630

[Keltrava]

Make sure Congress dosen't try to bailout victims

The "victims" didn't invest with Madoff because of the SEC.

They invested with Madoff because he was Jewish and had a big reputation inside the Jewish community and networks. These same victims by and large will be hiring Jewish lawyers and expect the substantial Jewish faction in Congress to come to their aid.

Most other investors are not swayed by race, religion or flimsy word of mouth recommendations.

No.... investors have only themselves to blame and nobody else.

[Keltrava]

from story..
..."New court documents released Wednesday revealed Ruth Madoff, 67, withdrew $10 million from one of her husband?s company bank accounts on Dec. 10, 2008, the day before he was arrested on federal fraud charges. Two weeks earlier, on Nov. 25, 2008, she withdrew $5.5 million from the same account."

So Pia Malbran is called an investigative reporter.
Does Pia think we are all Bernie's dupes? Withdrawing $10 million is not very relevant. What is relevant is where the money went. Are we to believe she took away cash stuffed in a plastic rubbish bag. Did she transfer money into her personal account. If so which bank? Was it an overseas bank? Were any transfers made again from the recipient account.

Where are all the "investigative reporters". This case is heaven for media investigations. So far nothing.

[janie_super]

greed is a deadly sin

[John Sawyer]

There's also the Madoff sons: here's some info on them that doesn't paint them in quite the innocent light that they and their parents have painted them--ignore the article itself, and read the comments appended to the article:

http://tpmmuckraker.talkingpointsmemo.com/2008/12/unlike_dad_madoffs_sons_used_o.php

[hcmnvt]

Write to Congress expressing anger in regards to the SEC''s handling of the Madoff Fraud:

Below are instructions in regards to a website that has been developed to generate letters to Congress; the site is user-friendly with sending letters to Congress; how to access ANY Senator & House Representative, including those that only use "webmail". Within the website, you have the option to be listed as a Madoff VICTIM, a RELATIVE of a Madoff Victim or a FRIEND of a Madoff Victim:

1) Go to: http://www.bernard-madoff-fraud-resources.com/
write_to_you_rep_madoff_fraud.php
2) You will find a drop-down menu at the above site for your respective State. All Senators and Congressional Representatives'' email addresses that have been garnered are listed.
3) If your State"s Congressional reps are listed great; if not or if
for example only 1 Senator or no House Reps are listed then do the
following:
4) COPY the website''s letter and then go to the following 2 sites to PASTE:
US SENATE http://www.senate.gov/general/contact_information/senators_cfm.cfm
US HOUSE https://writerep.house.gov/writerep/welcome.shtml
5) each of the above sites will lead you to your respective Senators & Congressional Reps; PASTE the letter into the respective Senator & House Reps "webmail" form; then SEND
6) Note that it''s important to only send to Senators and Representative from your state; otherwise the Senator and Rep will view the letter as SPAM

[grandesign]

No, law inforcement is busy looking in Bong-gate with Michael Phelps. There''s no resources to go after Mrs. Madoff.

[credibility2]

She is complicit in his criminal activities. She is also impeding and obstructing justice. All of Madoff''s family''s assets and bank accounts need to immediately be frozen pending further investigation. I hope she is also arrested, charged and held accountable in a court.