By Kim Velsey 1/22 5:15pm

House of Shame

The old place was swanky.

Prison-bound Peter Madoff To Spend Last Days of Freedom In Aptly-named Liberty House

It has a 24-hour doorman and river views, but the real appeal of 377 Rector Place—a building that is about as bland as a luxury tower can be—lies in its name: Liberty House. Particularly if one is about to start a 10-year prison sentence.

The New York Post reports that Peter Madoff and wife Marion have moved into a $3,200-per month one-bedroom rental in the Battery Park City building. For someone who has agreed, as part of plea bargain, to the criminal forfeiture of $143.1 billion, including all real estate and personal property, a rental is definitely the way to go. Read More

By Kim Velsey 7/19/12 7:30pm

House of Shame

the-madoff-FAMILY

A Madoff Investment That Will Actually Make Money: Family Homes Coming to Market

In the midst of running their elaborate Ponzi scheme, the Madoff family invested money in some actual investments—namely, real estate in Manhattan, Long Island and Greenwich.

The government came for Ruth and Bernie Madoff’s penthouse years ago, but the real estate holdings of the rest of the family have taken a little longer to claim, as the courts untangle the many complications of recovering cash stolen by the clan. Read More

By Steve Huff 1:43am

Crime

Eric Stein

Once-Convicted Con Man Eric Stein Arrested, Accused of Being a Con Man

The U.S. Attorney and Postal Inspection Service announced Tuesday that Eric Stein, age 53, had been arrested and charged “with running an investment scam through Return-A-Pet LLC–a Manhattan-based company he operated…” Authorities who investigated Stein’s business say he may have lined his pockets with up to a half-million dollars over the last 3 years by hoodwinking consumers into buying “sham Return-A-Pet distributorships using false and misleading advertisements.”

This is familiar territory for Eric Stein. Read More

By Foster Kamer 8/22/11 4:36pm

FINANCIAL CRIMINAL OF THE DAY

amd_anthony_cuti

Former Duane Reade CEO Sent to Prison and Fined $5M For Something Other Than Making You Wait on Inexplicably Long Lines (Updated)

Duane Reade has recently been busy rehabbing its image—a refrigerated beer cave selling vintage beer brands in Williamsburg’s, a sushi bar in Wall Street’s, etc—after being routinely criticized for (among other things) slow service. Which is mostly tolerated because, well, it’s just everywhere. Well, that image took a slight hit today, when the drugstore chain’s former President and CEO Anthony Cuti was sentenced to three years in prison for fraud. UPDATE: Statement from Mr. Cuti’s defense team below. Read More

By Mike Taylor 1/04/11 6:02pm

Legal Matters

Dateline, India: Vikram Pandit Named in Citi Fraud Case

Update: A Citi spokesperson contacted The Observer with the following statement:

As this individual well knows, Citi identified the fraud and immediately reported the matter to the regulators and law enforcement agencies. His claims against senior executives are completely without basis and we intend to contest them vigorously. It was on Citi complaint that the Read More