Funds for Andrew's deal came from a $100,000 transfer from his investment account at Bernard L Madoff Investment Securities and a $300,000 transfer from the firm described as a loan from Ruth Madoff, according to Picard's lawsuit. Mark's purchase was funded in part through transfers from an operating account at his father's company, the complaint says.
"The Trustee has found no evidence that such a loan was ever serviced or the amounts repaid," according to the suit.
Amanda Remus, a spokeswoman for Picard, declined to comment. Stephen Shimshak, an attorney for Andrew Madoff and executor of Mark Madoff's estate, didn't return a voice mail.
The Madoff firm began liquidating in December 2008, with Picard's appointment under the U.S. Securities Investor Protection Act. Bernard Madoff is serving a 150-year prison sentence following a guilty plea. Mark Madoff committed suicide in December 2010.
The family lawsuit is Picard v. Estate of Mark Madoff, 09-01503, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The Madoff liquidation case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities Inc., 08-01789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).