The brothers deleted e-mails to obstruct a 2005 SEC probe that could have exposed their father’s fraud, DiPascali claimed. They included messages between the sons and other employees in which they discussed altering trading account information being given to the U.S. Securities and Exchange Commission, as well as the company’s true trading profits and losses, DiPascali said. Flumenbaum called the claims unfounded. DiPascali died from lung cancer last year.
No Resolution
Picard is going after millions of dollars that were left to the brothers’ beneficiaries, as well as a multimillion-dollar apartment on 74th Street on Manhattan’s Upper East Side and a home in Greenwich, Connecticut. Andrew Madoff left more than $15 million in property to his children, ex-wife and fiancee in his will, court records show. Mark Madoff’s will listed assets of $18.6 million, including almost $9 million in stocks and bonds.
The trustee probably wants to "deprive every Madoff -- or Madoff relation -- of any possible fruit of the fraud," said Richard Scheff, a former prosecutor who’s executive chairman of Montgomery McCracken Walker & Rhoads LLP in Philadelphia. The new complaint will also "send a message to Bernie Madoff that his crimes will plague his family for the rest of his life and beyond."