The Journalreports that Andrew Cuomo has charged Ezra Merkin "with civil fraud for steering $2.4 billion to Madoff without telling investors." In related news, Daily Beastsources say Palm Beach "resident" Ruth Madoff is still hiding assets in her bra while sister-in-law Sondra slums it up.
As Ruth Madoff swept into Palm Beach last month with a quintet of girlfriends, her $7,500 Birkin bag dangling, her husband's 74-year-old sister, who was ruined by Bernie's scam, was watering plants and driving people to the airport just to make ends meet.
Sondra Wiener, forced to make pocket money like an out-of-work laborer, endures the pity of her neighbors. After her brother's scheme collapsed, she also put her home in a gated community outside Palm Beach up for sale. Her brother mailed her and other family members Cartier, Tiffany, and other expensive jewelry in December (which violated a court order and were repossessed), but sources say they do not think her sister-in-law Ruth has given her money. And Ruth is believed to have plenty, even now. Although authorities have seized her property and bank accounts--most recently the Palm Beach home and the antique yacht restored by Bernie--investigators describe caches of laundered funds hidden around the world in Ruth's name.