Judge Enters Default Judgment against Bernie Madoff’s Brother

The Honorable Laura Swain, U.S. District Court for the Southern District of New York, entered a default judgment against Peter Madoff, former CCO and senior managing director at Bernard L. Madoff Investment Securities ("BMIS"). The complaint alleged that Mr. Madoff created stacks of compliance documents setting out "robust" policies and procedures over BMIS's investment advisory operations. The SEC found that none of the policies or procedures were implemented, and that no reviews of compliance were performed, although Mr. Madoff represented that he personally had completed the reviews. The complaint also alleged that Mr. Madoff created false broker-dealer and investment advisor registration applications which were filed by BMIS. Furthermore, the SEC alleges that Mr. Madoff pocketed tens of millions of dollars from, among other things, undocumented transfers of investor funds from the bank account that BMIS used to perpetrate the Ponzi scheme. Mr. Madoff failed to answer, move, or otherwise respond to the Commission's complaint. The default judgement orders no monetary relief in light of Peter Madoff's criminal conviction and the $143 billion in restitution ordered in the parallel criminal proceeding, United States v. Peter Madoff.

See: SEC Press Release.