April 16, 2009 -- The brother of convicted Ponzi schemer Bernard Madoff wheels around Palm Beach in a vintage Aston Martin worth more than $235,000, paid for by Madoff Securities, according to court documents filed by London-based bankruptcy trustees.
The Joint Provisional Liquidators of Madoff Securities International Limited, Madoff's London based company, filed for bankruptcy in Florida and are attempting to seize some assets of Peter Madoff, including the vintage Aston Martin.
The liquidators allege Peter Madoff "is personally in receipt of assets that may have been fraudulently transferred to him by MSIL or may otherwise be recoverable by MSIL," according to the documents filed in the United States Bankruptcy Court in the Southern District of Florida this week.
The liquidators received recognition in the court that enables them to pursue Peter Madoff's assets and any documents and information related to the liquidation of MSIL, according to the judge's ruling.
"We are grateful for the recognition and assistance of the U.S. courts," Steve Akers, a provisional liquidator of MSIL, said in a paper statement.
One asset in question is a vintage Aston Martin worth $237,600, according to the court documents.
In the filing the liquidators claim "in March and May 2008, Bernard Madoff caused wire transfers from MSIL accounts to be made to the Aston Martin company in the amounts of £35,000 and £100,000, respectively, for a total of £135,000 ($237,600), in order to enable the purchase of a vintage Aston Martin automobile, model number DB2/4 1964 … for Mr. Madoff's brother Peter Madoff."
The dollar amount is based on the approximate exchange rate at the time of the transactions, according to the documents.
The Cost Aston Martin Was Delivered to Peter Madoff in Palm Beach
The $237,600 charge was recorded as "a debit to a personal loan account of Mr. Madoff" in the MSIL books, and the car was delivered to Peter Madoff's house in Palm Beach, the liquidators allege in the court documents.
The judge granted an order preventing Peter Madoff from moving the car.
The loan was allegedly repaid from internal corporate accounts and not Bernard or Peter Madoff's personal funds, according to the court filing.
Peter Madoff has not been charged with any wrongdoing. Peter Madoff's lawyer could not be reached for comment.
Bernard Madoff, 70, pleaded guilty last month to 11 felony counts in connection with a $65 billion Ponzi scheme. He is currently awaiting sentencing at the Manhattan Correctional Center. He faces up to 150 years in prison.