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Madoff May Be Worthless, Literally

(U.S. Marshals Service)
Bernard Madoff may be worthless, literally, according to a financial analyst who broke down the admitted fraudster's business holdings to Bloomberg.

Though court filings dated Dec. 31, 2008 value Bernard L. Madoff Investment Securities LLC at $700 million, Larry Tabb, who runs the financial market research firm TABB Group, told Bloomberg the company might only garner $10 million in a sale, which would drop Madoff's total assets to $136 million.

Given that federal prosecutors are seeking $170 million in forfeitures from Madoff, well, you get the point.

"No doubt he is insolvent," Mark Bane, a lawyer with Ropes & Gray LLP in New York who represents Madoff creditors, told Bloomberg. "He is currently vulnerable to contingent liabilities in the form of claims that could be asserted against him by all he defrauded."

Sounds like Madoff could use some help from an accountant. Unfortunately, his chief accountant, David Friehling, will be arrested Wednesday, charged with filing false audits and aiding and abetting security fraud, CBS News confirmed.

Madoff faces up to 150 years in prison on 11 counts of fraud. He will be sentenced in June.

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