Sources Implicate Madoff's Wife

They Indicate She May Have Been Involved In His Mega-Ponzi Scheme

(CBS)  While Bernie Madoff has been making headlines for his $50 billion Ponzi scheme, his wife, Ruth Madoff, has managed to avoid much of the harsh glare of the public spotlight -- until now.

CBS News correspondent Randall Pinkston reports that CBS News contributor Lucinda Franks gained access to some of the posh Palm Beach, Fla. elite close to the Madoffs for a piece in The Daily Beast.com, and says she learned that Ruth may have been involved in her husband's admitted Ponzi scheme.

“Ruth Madoff has more than one face,” Franks says. "One of my sources knew a woman who was bemoaning the fact that she couldn't get into Bernie's funds. ... Ruth told her, 'Call him. You can get into the fund.' So she called Bernie, and said, 'Ruth told me I should mention her name.' And Bernie said, 'You're in. How much do you want to invest?" '

Another apparent victim of Madoff's scheme: his own sister, 74-year-old sister Sondra Wiener.

"Now," Franks observes, "my sources say, she is watering plants and driving people to the airport to make ends meet."

But while Bernie supposedly swindled his sister, sources told Franks he was always loyal to his wife.

“People describe a couple that was really glued to each other,” Franks points out. “They didn’t golf, except with each other. They didn’t eat, except with each other.”

Just weeks before her husband pleaded guilty, Franks says, Ruth was hitting Palm Beach’s chic boutiques on a shopping spree with five girlfriends.

"I don't think Ruth's worries are about money right now. Her husband salted away money all over the world in her name, and this is what investigators are trying to get back now."

Madoff remains in custody until his scheduled June sentencing, while Ruth's fate remains unclear, Pinkston says.

[gce651]

Take her to Gitmo.
Put her in a cell with a few orange-suited fellow middle eastern Semites.

[gce651]

"May have been involved???" Gee, do ya think?

She was his book keeper!

She cashed a couple of multi-million dollar checks right as he was being arrested!

[rrozsa]

Keep trying, Ham, and maybe someone will take the bait. You reckon everyone knows by now that you're just a poser troll?

[iconnic]

Again, I think the entire thing is RIDICULOUS!!!! The very people who invested with these people knew all along what was going on!!! So the same things you are saying about the Madoffs in my book applies to all the greedy people who invested, knowing what was up. The very same things you re saying about the Wife applies to the investors as well. NO-BODY WAS INNOCENT IN THIS THING and if you proceed with that premise there's a bridge in brooklyn....ok, yes people got stung, well that's what you get when you play with fire and greed. ALL of you were in this thing together and you knew it, so watch the hateing, cause it will come back to you. I understand what it means to loose everything you have, and I imagine the absolute terror it has caused in hearts, but I have to keep saying when you listen to all the news stories coming out, these women who entrusted their futures with their husbands, who in turn entrusted it to Mr. Madoff. You really believe that this man isn't feeling any pain behind this? That's a bunch of hog wash. I believe this man is tormented by what has ocurred as well, his family. He could have dissapeared off of the face of the earth, but he didn't . I honestly believe that he tried to do what he could, but he knew it was a lost cause and sadly turned to who-his family, cause in the end, when you lose your fairweathered friends, who do you really have, your family and yes, you have your wife and/or husband as the case may be. So what do you now do, all the greedy people who wanted in? You vilify the entire family? What good is that going to do? Is it going to get your money back? Everyone should be indicted in this, the government for not calling it for what it was and doing nothing, or at least the government officials who turned a blinds eye, the greedy investors and Mr. Madorff because he was ultimately the one responsible for the entire thing.

[princessleah64]

This is completely RIDICULOUS..to insinuate that this "poor, defenseless, devoted" wife had NO clue on what her husband was doing? Are u people that naive? I can't believe anyone has remorse for this woman. She has lived her LAVISH lifestyle for years from STOLEN money and now she should get to keep it? I hope the goverment takes each and every single penny she has!..Lets talk about the really poor defenselss wives whom's husband trusted Madoff and in turn they lost their live savings..lets talk about that..not this poor excuse for a person. They are theives!!!! common criminals..and to also insinuate that the two sons knew nothing? how ridiculous..Madoff is no dummy. He knew if he was ever found out it , everything was OVER....but he was smart enough to help his family concoct this RIDICULOUS story so he could take the fall so his precious wife and sons, and future generations could keep part of the STOLEN money!!!!!!!!!! and you know what America?? its working...stupid people are feeling sorry for this family of criminals! How naive are we gonna continue to be? SERIOUSLY? Its absolutely absurd to feel ANY remorse for this woman!

[iconnic]

Ok. While I really do understand the pain this man has caused, what I find utterly repugnant is the response of the people who invested with him. You are not going to tell me that these people did not know that somethng was up. How can you continue to beat the market while everything else is not performing. They were happy as two pigs in slop, while they "thought" they were beating the odds. Begging, Begging Begging to be a part of the scheme, and then whe the wind caught up with them, now they are turning like dogs on this family. I find it distasteful and disgraceful. I am not saying they should not be angry, but the level of venom, I think the attorney general should investigatge the people who invested with them as well, because they knew all along what was going on. Probably if the market had not gone down, they would still be investing with this man. I think people should show restraint, let them recover as much as they possibly can and leave the family alone. let his wife, his sons and their children alone. They will bear the burden of this all of their lives because I am sure they will be shut out of the Jewish enclaves they've enjoyed for so long and that will be painful to them. Stop all the hatred and venom towards these people because it will only turn back on the haters. TAke some responsibility for your own greed and stupidity. Vengence is mine so sayeth the Lord, so listen to your own religion and let God deal with this man. Turn the other cheek in your greed and stop letting the world know how lowly a people you really are towards one another. I'm sick of hearing abou this hatred and venom when these people were making bank...albeit or so they thought.

Peace out

[hatesthecolt]

The woman stood by her man. He was in charge. Blaming her will not "create" more money to spend on plasma tvs. Isn't it odd how the Media now blames the wife ??? Is this bashing women for being "bittccchy or grrrrreeedy " or am I wrong. Isn't it time we all move on ?
Posted by hamiltongrad

This is such a 1950's comment... she stood by her man??? While she was home doing the dishes (or supervising the household help washing the dishes)? This may have been "how it was" but it's not how it is. She knew and so did the sons. This scheme was too massive for him to have run on his own. If the prosecutors can prove it, she's a grown up and she needs to go to jail.

[tkjtkj]

to Pythoncharly :
we've been able to build extra prison space for people arrested with a joint, so surely there's enough room there for both the Madoffs and the NeoCon's !! Would you consider removing your 'instead' ??

[ici2i]

Sources implicate her? Please CBS, tell me where in this article is there a source that implicates her. Americans are waiting to hear whether she was complicit and then, with an outrageous title, I expected to find some news about her. Instead, you discuss how a sister and firend lost an investment and that Ruthy went on a shopping spree. What a shoddy job of misleading headline writing

The money is hid all over the world. Many accounts are probably in ficticious names. On their trips it would have been easy to set up accounts to hide money. Someplace she has a master record of how to access the money and how her kids can access it as well. The loans to the children were also a way to hide money.

[ghwab1949]

We can all "move on" after she goes to jail too for her obvious role in his criminal scheme. He may have master-minded the swidndle, but she was in on it too.

[hamiltongrad]

The woman stood by her man. He was in charge. Blaming her will not "create" more money to spend on plasma tvs. Isn't it odd how the Media now blames the wife ??? Is this bashing women for being "bittccchy or grrrrreeedy " or am I wrong. Isn't it time we all move on ?

[ianlou]

Ruth can't be quilty of participating in her husbands Ponsi scheme if she did not understand it.

Afer all, She's just a devoted house wife who only knows how to spend money, not make it (or in this case, steal it)

[wake_up_folks]

She's as guilty as he is! No way should she be allowed to keep money that was swindled from his investors. Every one of them should be in jail!!!!

[czechtraveler]

this criminal knows where the money is and should be offered a deal to stay out of prison as long as she tells the feds where "all" the money is hidden......the investors need some of their money back

[hamiltongrad]

Isn't it interesting how eventually the mass media gets around to bashing women ? Hasn't this poor woman gone through enough ? I am sure that she did not buy into this mess when she met her husband. As an advocate for all women, I tell my students to be wary of the media, as the blame game is there, all you have to do is ask who was driving the bus when it went off the road. And you blame the passengers ?
Why not let this poor lady alone to live her life and take care of her children, and friends. All of society is to blame, may sound a bit cliche, but in this case, it is a glaring truth.

[frankie2fing]

There is NO WAY one man could manage this much money with out help. His wife, kids, siblings ( the ones he liked and did not swindle), and close friends. NO WAY THE FEDS SHOULD LET IT END HERE! Go get em, boys!

[hungry1968-15]

Of course she knew about the whole scam, and yes - her assets should be confiscated as well.

She should be counting her blessings, that she's not in the country club jail with her husband.