Bernie Madoff: After the Fall Part 2

Ponzi schemer stole billions, ruined thousands of lives, including those closest to him.
7:39 | 02/04/16

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Transcript for Bernie Madoff: After the Fall Part 2
? ? I'm Tom lipinksi. I played mark in the miniseries. Mark Madoff is no longer with us, but his legacy lives on through the real-life words of his wife, Stephanie. Here's ABC's Amy robach. Wall Street is one big turf war. It's a for-profit enterprise. By benefiting one person, you're disadvantaging another person. Reporter: Bernie Madoff was always a man of secrets, but after his arrest, those who knew him best found out they didn't know him at all. He knew what he was doing and he just kept thinking that he could get himself out of it. Bernie's completely delusional, that's how he allowed it to happen. Reporter: Stephanie was Bernie Madoff's daughter-in-law. In 2011, she talked with us about what went on behind closed doors, and her memoir, "The end of Normal." Her life as Stephanie Madoff began in a designer wedding gown with the Harlem boys choir bursting into song. After all, this was no ordinary wedding. It was the social event of the season. Do you Stephanie, take mark as your husband, for better, for worse, so long as you both shall live? I was so happy that day. I was just so happy to be mark's wife. Reporter: Stephanie was 27 when she went on a blind date and met her soul mate, mark Madoff. He was just a genuinely nice, sweet, sensitive, handsome man. Reporter: She had no idea that mark's father, Bernie Madoff, was a Wall Street legend. I had never heard that name before. Never. I didn't even know he was that big a deal on Wall Street. I really didn't. I didn't. Reporter: On the night of her wedding, he was just another smiling bystander. I remember at one point, I looked off and saw him to the side, and I just sort of pulled him on the dance floor and was dancing with him, and he just wases of report, you know, and I was, like, dancing. I think I shocked him by pulling him out on the dance floor like that. Reporter: What she didn't know was that even in that happy moment, Bernie Madoff was hiding a secret that would soon destroy the lives of his family. He stood there at my wedding, watching everyone dance, and he knew that everyone in that room was going to get screwed. Reporter: There was always that enigmatic smile, and, it seemed, Littles. I never saw Bernie read a book. I never saw Bernie read a newspaper. He didn't really have meaningful, intellectual conversations ever. Reporter: At home, he compulsively organized his collection of Rolex watches and over 100 pairs of hand-made Belgian loafers. Everything had to be perfect. All of his clothes were perfect shirts, color coordinated. Perfect shoes, lined up. Reporter: To the outside world, the Madoff men seemed perfectly aligned. Working on the 19th floor of the famed lipstick building on the upper east side, this rare footage, shot at the height of their success, shows banks of traders working on what was then cutting edge technology. The operation run by mark and his younger brother, Andy. Hello, Madoff. Andy. He and his brother sat next to each other for nearly 20 years on a trading desk, building a legitimate business. He saw his brother every day. Reporter: But they became increasingly resentful that their father refused to involve them in the lucrative investment business he ran separately on the 17th floor. And it was hurtful to mark, because mark had built a very successful business on his own, and he couldn't understand why his dad wouldn't teach him his business. Reporter: That obsessive secrecy sparked tension between father and son. I remember several times, mark would come home late from work and be really upset because he had just had a big fight with his dad, and I would say, "Well, what was the fight about?" And he -- every single fight was about the same thing. He said to me, "Stephanie, I don't have any clue what my father does. I just want to know what happens, if he dies, what I'm supposed to do." And Bernie would always say the same thing. "You do your job and I'll do mine." Reporter: It all came to a head in December of 2008. The stock market was in freefall. Mark and Stephanie were about to have their second child, and she says Bernie's reaction to the news was strange. Bernie and Ruth both hugged me and mark, but after that, there was no talk of my pregnancy. I think Bernie knew, "I'm going to ruin another life." That's what he thought when he heard that I was pregnant again. Reporter: Days later, Stephanie's fairytale began to unravel fast. I dropped mark off at his office and I drove downtown. Reporter: Suddenly, she got a frantic call from mark. He was out of breath. I said, what's wrong? He goes, I'm fine, Stephanie, but it's my father. My father's done something really bad, and what he's done will probably crash the stock market. Reporter: Mark and Andy confronted their father, demanding to know the truth. He marched into his father's office and said, what the -- is going on here? And Bernie said that his business was just one big lie and that he owed billions. Reporter: Even as his family faced total ruin, Bernie asked his sons for one last favor. Give me a week to just, you know, deal with, you know, pay back what I can pay back and then I'm going to turn myself in. Reporter: Instead, mark called Stephanie's step-father, a retired securities lawyer, who persuaded mark and Andy to turn their father in. It was very difficult for mark to stand up to this man, to find the courage. To instantly decide to turn him in is not a kind of courage that everyone has. Mr. Madoff, what would you say to all those people that lost money, Mr. Madoff? What would you say to them? Reporter: Bernie would await sentencing under house arrest in his penthouse, while the rest of his family faced a firestorm of anger. Mr. Madoff, have you talked to your dad? I have no comment. I'm sorry, I can't. Mrs. Madoff, did you see your husband? Do you think the feds are going to go after the wife and the sons? $50 million lawsuit against the brothers, alleging they knew full well what their father was up to. My husband knew nothing. He knew nothing. He was in pure shock, and you could see the betrayal on his face and in his body. And he was destroyed. We felt as if our life had been taken away from us, and we kept looking for the nightmare to end. Reporter: But the nightmare was about to get even worse.

This transcript has been automatically generated and may not be 100% accurate.

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