President Trump’s Wannabe Treasury Secretary Steve Mnuchin And His Brother Pocketed $3.2 Milion From Bernie Madoff’s Ponzi Scheme
The death of wannabe Treasury Secretary Steve Mnuchin’s mother could not have come at a better time for him and his brother.
The Mnuchin brothers became beneficiaries of their mother’s estate when she died in February of 2005. The brothers soon discovered their mother had invested money with Bernie Madoff. They withdrew the $3.2 million from their mother’s Madoff account.
Madoff was arrested for running the $65 Billion Ponzi scheme in December of 2008.
Irving Picard sued Dune Capital Management LP, the hedge fund owned by Steve Mnuchin in 2010. Picard was the trustee representing Madoff victims. He was suing Madoff investors who emerged from the scam as “net winners.”
Picard alleged the $3.2 million withdrawal was fake profit and that the money belonged to other investors.
Irving Picard dropped the suit in 2015. The federal COA ruled the trustee could not make a claim for withdrawals more than two years before the fraud collapsed. Picard had been seeking to go back as far as six years.
The trustee had also sued Steven Mnuchin’s brother Alan, their lawyer William Zabel and trusts associated with the family.
The Mnuchin brothers nor their mother were accused of knowing about Madoff’s fraud.
Picard has so far recovered more than $11 billion for victims through such lawsuits. Picard also filed complaints against banks and offshore feeder funds that helped feed the scam.