Feds Seize Madoff Penthouse, Wife Evicted

Ruth Madoff Reportedly Pleaded with U.S. Marshals to Allow Her to Keep Her Fur Coat

(CBS/ AP)  Federal marshals took possession of disgraced financier Bernard Madoff's $7 million Manhattan penthouse on Thursday in a move that forced his wife to move elsewhere.

Proceeds from a sale of the property and its contents could be used to help reimburse those who lost billions of dollars investing with Madoff before he confessed to running a Ponzi scheme.

U.S. Marshal Joseph Guccione said the marshals arrived at the property at noon with a court order permitting them to take custody of the apartment and to make anyone living there move out.

Guccione said Madoff's wife Ruth had been advised in advance of the marshals' plans and was leaving the residence and surrendering all personal property.

"She will be leaving," he said at midday. "Restitution for the victims is the government's top priority."

A law enforcement source told CBS News investigative producer Pat Milton that Ruth Madoff was reluctant to leave the apartment and pleaded with the marshals to allow her to keep her fur coat. They told her no.

Marshals will be changing the locks, but they do not plan to remove any items today, CBS News has learned.

By about 1 p.m., the 67-year-old Ruth Madoff had left. It was not immediately clear where she went to live.

"Ruth moved out voluntarily pursuant to the prior agreements we reached with the government," said her laywer, Peter Chavkin.

According to the New York Post, Madoff's next move is unclear because several Manhattan buildings have refused to rent to her.

The 71-year-old Madoff was sentenced Monday to 150 years in prison. He pleaded guilty in March to charges that his investment advisory business was a multibillion-dollar Ponzi scheme that wiped out thousands of investors and ruined charities.

Authorities said Madoff had carried out the fraud for at least two decades before confessing to his sons in December that his investment business was a fraud and that he had lost as much as $50 billion.

Last week, Ruth Madoff agreed to give up all of her possessions in return for a promise that federal prosecutors would not pursue $2.5 million not tied to the fraud. The money, though, is not protected from civil legal actions that might be pursued by a court-appointed trustee liquidating Madoff's assets or by investor lawsuits.

Ruth Madoff broke her silence Monday when she said in a statement that her husband "stunned us all with his confession and is responsible for this terrible situation in which so many now find themselves."

Before she agreed on a deal with the government to resolve her finances a week ago, Ruth Madoff had indicated through lawyers that she planned to try to keep the penthouse and an additional $62 million in assets as unrelated to the fraud.

Before the fraud was exposed, the Madoffs had homes in Palm Beach, Fla., the south of France and the tip of Long Island along with the midtown Manhattan penthouse. They also traveled by private jet and yacht.

The couple met at their Queens high school and married in 1959. Ruth Madoff worked with her husband when he started his financial business in 1960 and she reportedly still had an office near his when the fraud was exposed.

Madoff has said he operated his fraud without the knowledge of his family.

Complete Bernard Madoff coverage:

Madoff Penthouse Property Seized
Feds Cast Wider Net In Madoff Case
Madoff Feels Remorse, Lawyer Says
10 More To Be Charged, Source Says
Madoff Sentenced To 150 Years In Prison
Ruth Madoff: "Embarrassed And Ashamed"
Madoff's Fraud: A Family Affair?
Transcript of Madoff Sentencing
Analysis: 150-Year Sentence "Grossly Unfair"
Court Sketches: Madoff Sentencing

[ABM_21]

Looks like "one" of the corrupt liberal members of our MSM wolfpack press that helped INSTALL Obama last November has been caught RED HANDED..........by perceptions5 July 2, 2009 11:25 AM PDT
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Let's see...Bush defrauded many African Americans (and others) out of their vote in Broward Co in Miami during the 00 presidential election in order to be 'installed' as president, yet the Retardicans claimed he 'won' that presidential election. he did the same thing in '04---this time, he did it in OH---but he 'won' that one, too, let some of you tell it. Obama wins in a landslide, yet know he was 'installed' as president. Your 'perception' leaves a lot to be desired. Further, this forum was about Madoff, not Obama. tot he Madoff dilema , I say one word...GOOD!

[babooph]

Those feds are tough with big shots-hope they don't take my coat & throw me out of my place with 2 &1/2 million in stolen cash in my account!!

[The-Wrongs-of-Man]

Bull and bearcrap. She's known everything all along. How stupid does she think people are? Blind, surely, to what she and her husband have been up to. But we know the Madoff family now.

They've been together since highschool, married for the past 50 years.

Her office was right down the hall from his. They lived together, stole together, laughed all the way to the bank together, and worldwide in their luxury jet and their regal estates.

She's a scambag just like her beloved Bernie -- and just like their sons.

[TrickynWV]

Ruth Baby! Move to WV ! I'm sure we can get you a job in our corrupt state government.

[dknelson353]

If I were the Feds I would take a closer look at the fur coat...it might have a lining of jewelry or negotiable bonds!

What a drag to have to retire on only 2.5 million, but not as big of a drag to have to retire on nothing like some of her husbands clients.

[sabre1111]

Don't get me wrong, the Madoffs are getitng what they deserve. But I find it ironic that the US government, the biggest thief of our money the last 200 years, is the one leading the effort of "restitution to the victims". I wonder who will lead the restitution of the US govcernment's tax victims?

[demongirl60]

Gee, TOO BAD! She knew what he was doing.... maybe now she will have to go out and GET A JOB instead of being a Richling LEECH on the rest of us folks who actually WORK for a living!

[amsterdope]

"This woman should be reduced to having to work at a WalMart checkout to earn a living and live paycheck to paycheck.."

Are you suggesting that working at Wal-mart will "teach this lady a lesson"?

My wife and I just happen to work at Wal-Mart, we have a perfect credit rating and pay our bills and feed the kids.

Are people "reduced" when working at Wal-Mart?

Is it such an embarrassing thing to have an honest full-time job there?

Well, let me tell you one thing; its not the people who work for $8.75 an hour, 55hrs a week, that caused America's banks and economy to collapse, leaving a great country like America, seeking a place in 21-Century. Its the people like US who are keeping the economy afloat at the moment and its the Stanfords and Madhoffs who have successfully and single-handedly smashed the American dream for thousands of people.

[faylabouiver]

KPHX******* ENOUGHT OF YOURSELF TOO,OK???????? HAVE AS MUCH RIGHT TO BE HERE AS YOU,THANK YOU.

[faylabouiver]

tautomer- you have no idea about the jews, its meant for the jews of today as well----------duh--- read your bible and since you can't understand it maybe get someone to help you,hahaha.

[tautomer]

Nope its meant for the descendants of Abrahamm Isaac and Jacob. Not latter century European pretenders.

[faylabouiver]

WOEISME1 YOU HAVE NO CLUE AS TO YOU I'M AND I COULD CARE LESS THEN A RAT'S REAR WHAT YOU THINK SO WHY DONT YOU FERME LA BOUCHE, YOURSELF!!!!

[faylabouiver]

TAUTOMER- YOU HAVE NO IDEA OF WHAT YOU ARE TAALKING ABOUT****READ YOUR BIBLE THROUGHLY AND YOU WILL SEE-DUH!!!!

[tautomer]

Of course I do. Ruth Madoff has no semetic ancestors. She is in no way related to the 12 tribes of Israel referred to in the bible.

[Heartlight]

I do not think Mrs. Madoff will be needing a fur coat where she is going. Any sympathy I may have felt for her evaporated when I saw Mr. Madoff's 91 year old client having to return to work in a supermarket, because his life savings was gone. My own brother lost $250,000.00, money he has worked hard for his whole life. Should Faye think I am jealous of her money, I live in that tax bracket too. I just happened to work for my money. What a truly evil group of people this family and their cohorts are. The sharks at the IRS, and the Justice Dept. are just getting started! They'd better fasten their Hermes belts, it's going to be a bumpy ride! Bon Voyage!

[tautomer]

Word is Ruth is a very....yes VERY kinky girl is a few different ways. This is no secret in the "right circles". She will have no problem finding "shelter" under the wing of an "interested" benefactor.

..and yes, she does have more squirreled away, but not all that much.

[AttentionDeficit]

HAAA-ha!

[faylabouiver]

jwesel1 God said in Genesis 12:3 And I will bless them,(the jews) who bless you and curse him who curses you, and in you shall all families of the earth be blessed. All of our blessings if you know it or not come from the Jewish people. God will curse them who curse them. Amen!!!

[kphx]

Hi Fay Ruth Madoff ... enough already ...

[woeisme1]

You're a fake freak.

[tautomer]

God meant the real Jews, who's identity was lost in the diaspora. Modern day so-called "Jews" have nothing to do with the real Jews. They are not descendant in any way. The true tribes of Israel are lost.

[pvperson3]

Isn't her cell ready yet?

[YCantWeAllGetAlong]

by hamiltongrad July 2, 2009 4:19 PM PDT
you obviously hate women, and have a major problem.
Blame and hate, vindictiveness, and punishment are NEVER the answer to anything. Dialogue and understanding is.
I feel badly for all those who lost money, but I feel worse for all of you, and society, that is frothing at the mouth , spitting to see some poor old guy and his wife "get theirs". Arn't we all better than this ??
Punishment is for the barbarians.
----------------
Don't feel sorry for me. I kept my fur. I don't hate women, but of course being one would help me there. No, I am NOT better than "get theirs". Did you even READ the stories of those who lost? Ask THEM for dialogue and understanding. Get a life. These people are losing their homes, their golden years, their LIVES. Give me a break. Poor wittle Mrs. Madoff, let her suffer.

[faylabouiver]

hamiltongrad- Very well said, I'm so sick to my stomach about some of the things being said here about her. If anything pray for them don't put them down. YES Bernie did wrong, but I will never believe she or her son's had anything to do with these.

[faylabouiver]

AND YES I DO FEEL FOR THE PEOPLE WHP HAVE LOST MONEY AND YES THEY SHOULD BY ALL MEANS BE PAIDED BACK IN WHAT EVER WAY THEY CAN DO IT AND IAM SURE THEY WILL. BUT AT THE SAME TIME I DO NOT BELIEVE SHE WILL NOT BE ALLOWED TO LIVE AS SHE DID BEFORE.I STICK BY HER BECAUSE I DO NOT FOR A SECOND BELIEVE THAT SHE KNEW ANY OF THESE, AND HER SON'S DIDN'T KNOW UNTIL MUCH LATER.