Madoff's waterfront Florida home, three boats seized

Apr 2, 2009, 22:44 GMT

Washington - Prosecutors started seizing the property of the fraudster-financier Bernard Madoff on Thursday, taking possession of his multimillion-dollar waterfront home in upscale Palm Beach, Florida, and three boats, the US Attorney's Office said.

Madoff, 70, faces 150 years in prison for the largest Wall Street swindles ever, and now faces loss of his personal property to pay back angry clients. The Florida property alone was reportedly valued at 14 million dollars.

The US Attorney's Office said it wanted the assets 'to maximize recovery for victims' as part of the forfeiture ordered by the New York federal judge who accepted his guilty plea last month.

Over more than a decade, Madoff tricked clients out of 50 billion dollars by paying some of them off with money from new clients rather than investing the funds in securities as he had promised.

His office produced fake investment statements for clients, and his accountant, David Friehling, 49, has been charged with securities fraud.

In a statement, Lev Dassin, the acting US attorney for the southern district of New York, said his office would ask that the property being seized be sold and used to compensate victims.

The boats included the 18-metre yacht 'Bull,' parked in Florida, the 13-metre boat 'Sitting Bull' in New York and an 8-metre motorboat and trailer, Dassin said.

The boats and home belong to Madoff and his wife, Ruth. US marshals carried out the seizures.

Madoff, currently in jail, faces sentencing on June 16.

According to a US court filing last month, prosecutors also intend to go after three other homes owned by the Madoffs, including the property and contents of a 7-million-dollar Manhattan luxury apartment, a 3.4- million-dollar beachside home on Long Island and a home in the south of France.

Other assets subject to seizure include a fourth boat, four cars, a 39,000-dollar Steinway piano and 65,000 dollars worth of silverware.

Ruth Madoff has argued that cash and other items in her name could not be seized to pay the victims of the scandal and were not the result of the fraud. But prosecutors said they intend to seize 17 million dollars in cash and 45 million dollars in bonds held in her name.

Madoff's net worth is estimated at 823 to 826 million dollars.

Madoff bilked thousands of investors around the world, including individuals and charity groups, of their money - many of their entire life savings. At least one investor and an investment manager have committed suicide since December over the revelations.

The scandal has been a major embarrassment for government regulators. An independent fraud investigator, Harry Markopolos, testified before Congress last month that he had warned the SEC of Madoff's shady operations some nine years ago.