Madoff Premium on Beachfront Home

The Montauk home sells for $9.4 million.

October 16, 2009, 5:57 PM

Oct. 16, 2009 — -- Bernard Madoff's Montauk beachfront home on the tip of New York's Long Island sold for $9.41 million, well above the listed price of $8.75 million despite the plunge in real estate prices across the country, which means that more money will go back to the victims of the largest ponzi scheme in history.

"Buyers were extremely enthusiastic about the location of the house and its potential and not at all put off by the fact that it was Bernie Madoff's house," said Pamela Liebman, CEO of Corcoran group real estate.


Liebman said she received multiple bids for the home and that the company donated all commissions back to the Madoff victim fund.

The buyers were adamant that their names not be released, she said.

Roland Ubaldo of the Southern District of New York Marshal Service and in charge of auctioning off the convicted conman's homes and boats said he was happy to get so much money for the victims. He said, "That's been our goal from day one -- to give back to the victims as much as possible."

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There was great interest in the Madoff home after U.S. Marshals put it on the market and conducted a video tour for news cameras. Corcoran real estate agents said they received multiple offers.

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"As soon as you walk into it, there is an understated elegance you don't see from the outside," said Ubaldo as he walked reporters through the 3,000 square foot home last month.

Madoff's Life of Luxury

Madoff bought the property and built the home in the 1980's. It was seized by the government in July and proceeds from the sale will go to the victims of Madoff's Ponzi scheme. His neighbors along the beach include Robert DeNiro and Ralph Lauren.

"People recognized the value of the property, the home, the incomparable views and nice, easy access to the beach," Corcoran real estate broker in charge of the sale, Joan Hegner, told ABC News.

Go behind the scenes of Brian Ross' investigation into Bernie and Ruth Madoff by clicking here.

The four-bedroom, three-bath home is located on 182 feet of prime beach property.

The U.S. Marshals Service still has two more Madoff properties to sell: the penthouse apartment in Manhattan and his Palm Beach waterfront estate.


Madoff's Mercedes Benz will be auctioned off next week and in mid-November, his three boats will put on auction in Fort Lauderdale, Florida. His wife Ruth Madoff sold their villa in France and an 85-foot yacht, agreeing to turn over the proceeds to the government.

Ultimately, the government expects the property sales to bring in around $30 million dollars, which is a tiny fraction of the billions of dollars lost by people who invested with Madoff.

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