Still much to unravel in Madoff case

March 14, 2009 at 12:00a.m.

NEW YORK (AP) — By all accounts, Bernard Madoff isn’t talking. And his wife, his sons, his brother and other key employees have lawyered up.

That means it could be a while before anyone else is arrested and the full extent of Madoff’s vast swindle comes to light.

Given the size of the paper trail — a $65 billion scam, 5,000 victims and monthly statements going back nearly two decades — experts say it could be six months to a year before charges are brought against any accomplices.

The day after Madoff was thrown behind bars, investigators returned Friday to the arduous task of piecing together one of the largest frauds in history — and trying to determine if anyone else was involved.

The FBI has refused to discuss the status of the investigation. But experts say it’s certain Madoff’s closest relatives and associates are high on authorities’ list of people who may have known what was going on.

Madoff pleaded guilty Thursday to 11 charges, including fraud, perjury and money laundering. He faces a maximum sentence of 150 years in prison, and the judge immediately jailed him — a decision his lawyers asked an appeals court to reverse Friday.

Also Friday, newly filed court documents showed Madoff and his wife had a combined net worth of more than $823 million at the end of last year, including a $7 million yacht and four properties worth a total of $22 million. Last month, a court-appointed trustee overseeing the liquidation of Madoff’s firm reported that about $1 billion in assets had been recovered from the business.

Part of the delay in charging any accomplices may be a lack of cooperation from key employees.

Among those under scrutiny is Madoff’s wife, Ruth, who withdrew $15.5 million from a Madoff-related brokerage firm in the weeks before Madoff’s Dec. 11 arrest, including a $10 million withdrawal Dec. 10.

Passing references to Ruth Madoff during her husband’s guilty plea Thursday drew laughter from a mocking audience of investors still bristling over a disclosure several weeks ago that she wants to keep $69 million in assets, including the couple’s $7 million Manhattan penthouse.

In addition, she faces potential civil litigation as a result of the collapse of her husband’s financial empire. Her lawyer has declined to comment.

Also on investigators’ radar is Madoff’s 63-year-old brother, Peter, who was instrumental in building Madoff’s investment firm.

Madoff sons Andrew, 42, and Mark, 45, also worked for their father in a trading operation he has insisted was legitimate and separate from his fraudulent investment advisory service.