An­drew Mad­off, son of Ponzi fi­nancier, dies at 48

The Times Herald (Norristown, PA) - - HEALTH - By LARRY NEUMEIS­TER

NEW YORK — An­drew Mad­off, Bernard Mad­off’s last sur­viv­ing son, died of can­cer on Wed­nes­day, years after turn­ing his fa­ther in and in­sist­ing he had been duped like the rest of the world into be­liev­ing his­tory’s most no­to­ri­ous Ponzi king was an hon­est fi­nancier.

An­drew Mad­off, 48, was “sur­rounded by his loving fam­ily” when he died at a New York City hos­pi­tal from man­tle cell lym­phoma, his at­tor­ney, Martin Flu­men­baum, said in a state­ment.

An­drew Mad­off and his brother, Mark, both worked on the le­git­i­mate trad­ing side of their fa­ther’s Man­hat­tan firm, two floors re­moved from the pri­vate in­vest­ment business where Bernard Mad­off car­ried out his $65 bil­lion Ponzi scheme over sev­eral decades.

Bernard Mad­off, 76, was ar­rested in De­cem­ber 2008. He pleaded guilty to fraud charges months later and is serv­ing a 150-year sen­tence at a fed­eral prison in North Carolina. Ex­actly two years after the fa­ther’s ar­rest, Mark Mad­off hanged­him­self in hisMan­hat­tan loft apart­ment as his 2-year-old son slept in another room.

“One way to think of this is the scan­dal and ev­ery­thing that hap­pened killed my brother very quickly,” An­drew Mad­off told Peo­ple mag­a­zine last year. “And it’s killing me slowly.”

An­drew Mad­off was first di­ag­nosed with the rare form of can­cer in 2003 but went into re­mis­sion. He blamed the re­lapse on the stress of liv­ing with his fa­ther’s scam. The dis­ease re­turned in Oc­to­ber 2012, and he told Peo­ple mag­a­zine that he felt “blind­sided.”

An­drew Mad­off had served as the chair­man of the Lym­pho6ma Re­search Foun­da­tion’s board of direc­tors un­til his fa­ther’s scheme was re­vealed. In his state­ment, Flu­men­baum said An­drew Mad­off had “lost his coura­geous bat­tle” with the dis­ease.

The lawyer said fu­neral ar­range­ments will be pri­vate.

The death came as au­thor­i­ties con­tinue to in­ves­ti­gate what role, if any, close fam­ily mem­bers and oth­ers linked to the Mad­off business had in the fraud. Sen­tenc­ings are sched- uled in sev­eral weeks for five for­mer high-level Mad­off firm em­ploy­ees con­victed of help­ing carry out the fraud by con­spir­ing to de­fraud clients and fal­si­fy­ing books and records.

This sum­mer, a cour­tap­pointed trustee who has re­cov­ered more than half of the nearly $20 bil­lion that thou­sands of peo­ple had in­vested with Mad­off filed a law­suit claim­ing that Mad­off’s sons used their fa­ther’s business as their “per­sonal cookie jar,” ac­cept­ing sham loans, fic­ti­tious trades and de­ferred com­pen­sa­tion. It ac­cused them of know­ing about the fraud and try­ing to cover it up by delet­ing emails dur­ing a Se­cu­ri­ties and Ex­change Com­mis­sion probe.

“The new al­le­ga­tions are un­founded and false,” Flu­men­baum said when the law­suit was filed. “As we stated from the out­set, nei­ther An­drew nor Mark knew of, or know­ingly par­tic­i­pated, in their fa­ther’s crim­i­nal con­duct. It was An­drew and Mark who in­formed the au­thor­i­ties of their fa­ther’s fraud, and put an end to it.”

Dur­ing a 2011 “60 Min­utes” in­ter­view, An­drew Mad­off said that from the be­gin­ning he had “ab­so­lutely noth­ing to hide and I’ve been ea­ger, almost des­per­ate, to speak out pub­licly and tell peo­ple I am not in­volved.”

He said he be­lieved his fa­ther used the le­git­i­mate op­er­a­tions of the trad­ing business that he and his brother worked on to cover up the mas­sive fraud he presided over, even show­ing clients the le­git­i­mate trad­ing op­er­a­tion to dupe them.

“It was one of the hard­est things to come to grips with in try­ing to get my head around this was that feel­ing that I had been used almost as a hu­man shield by him. It’s un­for­giv­able. No fa­ther should do that to their sons,” he told the CBS pro­gram.

The book, “Truth and Con­se­quences: Life Inside the Mad­off Fam­ily,” pub­lished in 2011 and pro­moted through me­dia ap­pear­ances by An­drew Mad­off, de­scribed how Bernard Mad­off sobbed as he told his sons about the fraud. It said An­drew Mad­off at one point draped his arm around his fa­ther and cried, too, be­fore the brothers went to lawyers and au­tho­rized them to re­port the fraud to au­thor­i­ties.

“I would love to say that Mark and I were wav­ing the flags of jus­tice in the air, but the bot­tom line is that we were ab­so­lutely ter­ri­fied. We knew that what we were do­ing was go­ing to send our fa­ther to jail, and the feel­ing was aw­ful — ab­so­lutely aw­ful,” the book quoted him as say­ing.

An­drew Mad­off, son of dis­graced fi­nancier Bernard Mad­off, talks to “60 Min­utes” cor­re­spon­dent Mor­ley Safer in New York in 2011.

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