Bernie Madoff destroyed thousands of lives with his Ponzi scheme, including the lives of his own family members. Netflix documented the rise and fall of his fraudulent company in the popular series Madoff: The Monster of Wall Street. However, the true crime documentary only touched on the impact this scheme had on Madoff’s relatives.
Almost immediately after his arrest in 2008, his family was struck by one tragedy after another, ensuring the Madoff name ended with the death of Madoff’s sons. Here’s a look at how Madoff’s Ponzi scheme destroyed his family.
Bernie Madoff lost $64 billion
Madoff’s scheme involved taking money from clients with the understanding that he would invest it for them. Instead, he moved the cash through several bank accounts to disguise the transactions. He then provided his clients with false statements that demonstrated bogus investment gains. Ultimately, other investors would unknowingly finance clients who pulled money from their accounts.
It all fell apart when the market crashed in 2008. Suddenly Madoff’s clients were pulling money from their accounts at a rate he couldn’t keep up with, causing him to fold under the pressure. He confessed everything to his sons, Mark and Andrew Madoff, who worked for their father. Allegedly, neither of the Madoff boys knew they were running a Ponzi scheme.
Bernie Madoff’s sons turned him in
After a family discussion, Madoff’s sons turned their father in to the police. At this point, it was only a matter of time before the public uncovered his scheme, and his sons were likely trying to avoid jail time. Authorities arrested Madoff the next day. During his confession, he was adamant that he’d worked alone. He was ultimately sentenced to 150 years in prison but died of kidney disease in 2021.
The scheme impacted at least 37,000 people, including individuals, charities, hedge funds, banks, and universities. Some celebrities were also involved, including Larry King, Kevin Bacon, Steven Spielberg, Rue McClanahan, and John Malkovich. Collectively, Madoff’s clients lost over $64 billion, leading to devastating results.
Mark Madoff died by suicide
Even though Madoff’s sons were never found guilty of partaking in the Ponzi scheme, they were still hit hard by their father’s arrest. His oldest son, Mark, died by suicide on the second anniversary of his father’s arrest. At the time, he had no contact with either of his parents.
According to the New York Post, Mark struggled with the media’s scrutiny of his father’s crimes and the family’s involvement. He first attempted suicide in 2009, leaving behind a note addressed to his father that read, “Now you know how you have destroyed the lives of your sons by your life of deceit. F— you.” He left behind four children, two he had with his ex-wife Susan Elkin and two he had with his wife at the time of his death, Stephanie Mikesel.
Andrew Madoff died of cancer
Madoff’s younger son, Andrew, died of a rare form of cancer in 2014. He was first diagnosed in 2003 and was in remission until 2011. Andrew condemned his father when the cancer resurfaced, blaming it on the stress the Ponzi scheme caused him.
At the time, Andrew Madoff told biographer Jim Campbell, “He’s killed Mark quickly, and he’s killing me slowly.” He hadn’t seen or spoken to his father since his arrest. Andrew had two children with his wife, Deborah West. At the time of his death, he was engaged to Catherine Hooper with plans to get married after finalizing his divorce.
Ruth Madoff lost almost everything
Soon after her husband’s arrest, Ruth lost everything. Authorities seized $80 million in assets, including her and her husband’s Manhattan penthouse, private jet, 88-foot megayacht, and jewelry. According to ABC News, the repercussions were so daunting that the couple attempted suicide while he was out on bail.
After Madoff’s sentencing, prosecutors decided Ruth could keep $2.5 million, and she moved into a condo in Boca Raton, Florida. She dyed her hair and changed her name to avoid recognition, but the media still harassed her and the rest of the Madoff family. The New York Post reported her moving in 2012 into a home owned by Andrew and his first wife in Old Greenwich, Connecticut. After Andrew passed away, Ruth remained in Old Greenwich to stay near her grandchildren but moved into a rental. She currently resides in a nearby senior living facility.
Mark Madoff’s widow reinvented herself
Mark’s second wife, Stephanie, has tried to separate herself from the Madoff name. She wrote a memoir, “The End of Normal,” detailing her experience with her father-in-law’s fraudulent activities and Mark’s suicide. In 2012, the trustee responsible for recovering some of the money Madoff stole sued her for money she and Mark received illegally. They dropped Stephanie from the lawsuit in 2017 under confidential terms.
The trustee determined that Mark’s first wife, Susan, had acquired her fortune early enough that she didn’t owe anything. After the lawsuit, Stephanie worked hard to reinvent herself as a wardrobe stylist.
Andrew Madoff’s wife filed for divorce
The day Madoff was arrested, Andrew’s wife, Deborah, filed for divorce. She changed her last name and distanced herself from the family.
According to the Daily Mail, Andrew’s will determined his ex-wife would receive a third of his $16 million fortune. However, she didn’t see that money as authorities confiscated most of his estate to pay back the victims of Madoff’s Ponzi scheme.
Bernie Madoff’s brother got sentenced to prison
Madoff’s brother, Peter Madoff, acted as the company’s chief compliance officer. Prosecutors sentenced him to 10 years in prison for falsifying documents and lying to regulators. He severed nine years before he received home confinement in 2020. Peter only had one daughter, who changed her last name when she married.
Bernie Madoff’s sister lost everything
Another one of Madoff’s victims was his older sister, Sondra Wiener. She and her husband, Marvin, lost $3 million due to the Ponzi scheme. As a result, they had to sell their home, among other assets. In addition to investing with Madoff, their son, Charles, also worked for him and was wiped out after his uncle’s arrest. The trustee sued Sondra, Marvin, Charles, and Charles’ wife for $1.7 million in a move Charles described to the New York Post as “emotionally devastating to our entire family.” Sondra Wiener and her husband both died in an apparent murder-suicide in 2022.
Bernie Madoff’s grandchildren all changed their last names
Ruth and Bernie have six grandkids, two boys and four girls. They range in age from adults to teens. Despite publically stating his final wish was to salvage his relationship with his grandchildren, Madoff wasn’t the best grandfather. He allegedly banned the kids from his Upper East Side penthouse because he didn’t want them touching things and making a mess.
According to Town & Country, they all changed their last names to avoid association with the scandal. No one in the Madoff family still uses the last name.
