Thursday, March 26, 2009

Investor Freezes Madoff's Brother's Assets

A state judge in NY has frozen Peter Madoff's assets, at the request of a law student who claims that his trust fund was depleted by the payment of fictitious returns to other Madoff investors.

The complaint alleges that Peter Madoff had "full knowledge that it was a fraudulent Ponzi-scheme and nothing more than an unprecedented fraud."

Justice Stephen A. Bucaria of Nassau County Wednesday ordered that Peter Madoff be "prohibited and restrained from removing any funds" from any of his accounts, pending an April 3 hearing.

Apparently this is only a temporary restraining order, which will expire at the April 3 hearing, where the court will hear arguments from both sides. TROs that freeze assets are tough to get, so this law student must have some decent evidence of Peter Madoff's involvement in the Madoff fraud. We will see what happens on the 3rd.

The full story is at Law.com.

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