04 July 2013

Peter Madoff derails liquidator's lawsuit

The case against Bernard Madoff has hit a brick wall after Peter Madoff, younger brother of the jailed Ponzi scheme fraudster, refused multiple questions yesterday in London's High Court.

By Charlotte Mullen

Madoff declared his constitutional rights more than 50 times

Peter Madoff - testifying via video link from a US prison - was questioned about his knowledge of the operations of Madoff Securities International (MSI) but said he would invoke his US Fifth amendment right against self-incrimination, reports the Financial Times.

Luxury spending

Mr Madoff was testifying as a witness for Grant Thornton, the liquidators attempting to sue former London directors, amongst them Stephen Raven, CEO of MSI and Andre Madoff, Bernard Madoff's son and former US director, for approximately £33m that they claim was knowingly spent on yachts, cars and other luxury items for the Madoff family. Peter Madoff, speaking from the US prison where he is serving his 10 year sentence, gave an hour-long testimony that was almost entirely a constant reiteration of the terms of the Fifth Amendment of the US Constitution, as he pleaded 'not to be compelled to be a witness against myself' in response to questions from former MSI London director and defendant Philip Toop.


The liquidators also allege that 'stolen money' was stored at the London platform, to which Madoff's defence was a refusal to answer, under further accusations that fees of £119,000 a week were at one point being sent from New York to London.

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