I just read in Crains that Bernie Madoff’s brother Peter Madoff has been put on a $10,000 per month allowance by a federal judge while prosecutors probe the assets of the ponzi schemer’s kin. This is very scary, obviously. Especially if you are Marion Madoff, his wife. (Btw, I love that name: Marion Madoff… hysterical.) But only in the sense that you have to live on $10,000 per month. Not in the sense that she gets the house clear and square if they ever divorce.
In any event, I just got wind of this story that two years ago, Peter, having sniffed that the feds were bearing down on is brother Bernard L. Madoff, did a cute maneuver which essentially quit-claimed his property in Florida to Marion. And then, she applied for a homestead exemption (in Florida your home is exempt from restitution and forfeiture in case your creditors win an action against you). The quit claim deed appears below:
Isn’t this wild? I wonder if they are going to get brought up on fraudulent conveyances charges on this one? It’s not as if they are the only ones to pull this cutesy move. All these CEO’s have done it. Check out this post: http://www.divorcesaloon.com/wall-street-ceos-switch-property-to-their-wives-names-but-what-happens-if-they-divorce All these CEOs from Merrill to Morgan Stanley to Chrsyler to god knows where else do this. They transfer the property in the wife’s name so as to avoid losing their very shirts. Can’t blame em. But who are they kidding? And how long before this loop hole in the law is padded up so that these cowboys can’t rob the chicken coop and still get to eat the chicken when they are done? Oh, here is the other page for the Marion and Peter Madoff transfer of real property/quit claim deed….
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