The subject of a shocking new Netflix docuseries, Bernie Madoff orchestrated the biggest and most audacious Ponzi scheme in history, cheating investors out of a reported $65 billion (£52.4bn). Enriching himself enormously in the process, the infamous scammer scooped up several trophy homes and lived the high life on other people's money, until the fateful day in 2008 when the FBI came knocking. With his financial crimes firmly back in the spotlight, click or scroll through to take a look at the late swindler's ill-gotten abodes.
Born on 29 April 1938, Bernard Madoff called this humble rental in Brooklyn home for the first eight years of his life. His jack-of-all-trades father Ralph had various jobs and worked as a plumber. This enabled him to buy a house in the leafy Queens neighbourhood of Laurelton in 1946.
However, according to CNN, Ralph Madoff and three other people wracked up a sizeable amount in unpaid federal taxes. Consequently, the IRS eventually placed a tax lien on the detached Tudor-style home in order to recoup the money, which was paid off in 1956. Ralph went on to move into finance together with his wife Sylvia. The broker-dealer firm was placed in Bernie's mother's name, and the company ended up running into trouble with the regulator. His parent's brushes with the law would seemingly foreshadow what was to come...
After graduating high school in 1956, Bernie attended the University of Alabama for a year before moving back to New York to study at Long Island's Hofstra University. In November 1959, he tied the knot with his high school sweetheart, Ruth Alpern. Following a brief honeymoon, the newlyweds moved into a modest one-bedroom apartment in this complex in Bayside, Queens, paying rent of $87.50 (£65) a month, which is $880 (£713) today.
Bernie had a fleeting stint in law school but left to follow in his parents' footsteps and pursue a career in finance. In 1960, he founded a penny stock brokerage that grew into Bernard L. Madoff Investment Securities LLC. With business brisk, the couple upgraded to a roomier two-bedroom apartment in Great Neck, Long Island in 1964, the year their first son Mark was born. Two years later, they bought their first home, this four-bedroom, three-bathroom ranch-style house in nearby Roslyn.
The pair paid $35,000 (£28k), the equivalent of $316,000 (£256k) today. Not long after, their second son Andrew was born. By the end of the 1960s, Bernie's burgeoning investment advisory business was doing well, but things really took off over the following decade when he embraced computer technology and a dubious (albeit legal) practice called Payment for Order Flow.
Meanwhile, the ranch-style property served as the Madoffs' main residence until 1984, when it was sold for $335,000 (£272k) according to Redfin, which is just less than $1 million (£811k) today. However, the couple also snapped up a coveted 1.5-acre oceanside plot in the Hamptons, closing the deal in 1980 for $250,000 (£202k), and built a fabulous four-bedroom, three-bathroom holiday home, which cost them $20,000 (£16k).
The $270,000 (£219k) that the duo spent on the Montauk property works out at $958,000 (£778k) today. Bernie was raking in money through his financial ventures by this point and the couple could afford to splash out. In fact, they could have upgraded from the ranch-style home years before they took the plunge but chose to stay there as Bernie's fortune shot up.
While the couple opted for a relaxed, rustic feel, the beach house nevertheless impresses, with a picture-perfect pool, soaring cathedral ceilings, an imposing stone fireplace and other dramatic touches. That said, the Madoffs kept the décor—which looks decidedly dated now—pretty simple when they were in residence.
Here's the master bedroom as it was in 2009, captured by the FBI and shared on ABC News, when US Marshals seized the property following Bernie's arrest. Along with the rest of the fraudster's real estate portfolio and other confiscated assets and ill-gotten gains, the beach house was put up for sale. It was purchased by Steven Roth of property investment firm Vornado Realty and his wife Daryl, a Broadway producer, for just over $9.4 million (£7.6m).
The Roths wasted no time enlisting the services of renowned French architect and designer Thierry Despont, who oversaw a complete overhaul of the tired beach house. As you can see from this listing shot of the living room, the fireplace was tastefully remodelled, with wood ceiling panels and built-in shelving among the room's stylish additions.
The master bedroom, which had been crowded with 1980s-style pine furniture, got a minimal makeover, brightening up the space and putting the focus on the gorgeous sea views. Other highlights of the facelift include the refreshed kitchen and bathrooms. Though the Roths were said to have put their hearts and souls into purchasing and developing the property, by 2018 they’d decided to sell up.
However, nobody wanted to buy it. The infamous property, which now has three bedrooms compared to the four it featured before, has been on and off the market for the past five years. In 2022, the Roths listed the beach house for $22.5 million (£18.2m), before slashing the asking price to $16.5 million (£13.4m) in a bid to offload the hard-to-shift home. Finally, a buyer snapped up the home in January 2023 for an unknown sum.
Bernie was riding high in the early 1980s, with his then-legitimate business flourishing. Having finally decided to move from their Long Island ranch-style home, the maverick financier and his wife upped sticks to New York City and bought a duplex penthouse in this prestigious prewar co-op in Manhattan's Upper East Side, which Bernie managed to get “for a song” according to The New York Times.
Spanning 4,000 square feet, the three-bedroom, three-and-half-bathroom apartment initially boasted interiors designed by Angelo Donghia, who was hired by Donald Trump around the same time to decorate his Trump Tower pad. Here's the living room as it was left by the Madoffs following Bernie's fall from grace.
The scene of many a crime, this is Bernie's home office in all its glory. In 1987, Bernie moved his business to the landmark Lipstick Building in Midtown Manhattan. The incredible returns he was offering were attracting investors galore, including A-list celebrities. Oversight was minimal since the so-called “Wizard of Wall Street” used his charms to seduce regulators.
Bernie even ended up serving as the Nasdaq stock exchange chairman and sat on several SEC regulatory boards. Investors were enticed not only by the potential returns but by the veneer of respectability the fraudster exuded, so winning their trust was easy. This also explains why it took so long for Bernie to be brought to justice. Back to the New York penthouse, this is the Madoffs' very 1980s, chintzy master bedroom.
The penthouse's stunning terrace is shown here. According to Bernie's court testimony, the pyramid or Ponzi scheme began in the early 1990s when the genuine returns he was getting for clients were on the wane, though the FBI believes the swindle was started before then. Bernie used cash from new investors to cover returns for existing ones, issuing the unsuspecting clients with monthly invoices showing the fictitious gains.
Red flags were soon raised and probes followed, but it took the 2008 financial crisis to bring Bernie down, along with a tip-off from his family. The crash prompted a flood of requests from investors for their money. Unable to pay out, Bernie came clean about the Ponzi schemes to his sons, who tipped off the FBI. With the cat out of the bag, the fraudster, who was a billionaire by this point, was arrested by federal agents at the penthouse on 11 December 2008.
Bernie was placed under house arrest at the property until his trial and subsequent imprisonment. The penthouse was then put on the market by US Marshals, while its contents were offered to bidders over three auctions in New York and Florida during 2009 and 2010, with everything of value put up for sale.
Lots included the couple's custom-made floral four-poster bed and matching sofa, a Steinway grand piano that graced the penthouse's living room and an array of expensive jewellery. Even the family's kitchen utensils, board games and bath towels made it into the sales. All in all, US authorities recouped $3.5 million (£2.8m) from the series of auctions, but this was a drop in the ocean considering Bernie is thought to have conned investors out of a staggering $65 billion (£52.8bn).
As for the penthouse, it was sold in 2010 to Alfred Kahn, the man who licensed hit toy brands including Cabbage Patch Kids and Pokémon in the US, and his then-wife Patsy. They paid $8 million (£6.5m), almost a million dollars under the asking price. However, in a strange turn of events, a “mysterious fire” struck before the couple moved in, and rumour has it the property is cursed. The couple put the pad on the market in 2013 but had a hard time selling it, and their marriage broke down to boot.
The property was eventually sold to real estate developer Lawrence Benenson for $14.5 million (£11.8m). Here's the living room now, rocking a pared-down all-white look following its latest makeover. The penthouse was put up for sale in 2022 with an asking price of $18.5 million (£15m), though that included the apartment next door, which Benenson bought in 2016 for $4 million (£3.2m).
In 1994, when the Ponzi scheme was gathering momentum, Bernie and Ruth dropped $3.8 million—$7.5 million (£6.1m) today—on this dreamy five-bedroom, seven-bathroom mansion overlooking Lake Worth Lagoon in upscale Palm Beach. Built to a high spec by acclaimed local developer Michael Burrows, the Caribbean Colonial-style property made for the perfect family escape.
The great room and dining area wow with a 22-foot beamed cypress wood ceiling, nicely complemented by terracotta tile flooring. The Madoffs were rather restrained with their furniture choices, opting for comfy white sofas, brown leather-upholstered chairs and not much else in the cavernous space, with a select few pieces, including an antique telescope, the only adornments.
The kitchen was even more restrained when the Madoffs lived at the property. With little in the way of decoration, it verged on spartan but was suitably high-end nonetheless, bearing in mind the countertops were made of fine marble and the gadgetry and appliances look to have been top quality.
The master bedroom, on the other hand, has a much grander feel, with its 17-foot ceiling and French windows, which open to a balcony that runs the width of the property and overlooks the magnificent banyan tree in the front yard. The Madoffs kept things tasteful in this room with a traditional mahogany bed, chic chaise longue and other unfussy classic pieces.
The cherry on the cake is the pool, which is situated right next to the grand loggia off the great room and dining area. Following Bernie's arrest, the waterfront home was confiscated by US Marshals and put on the market with Corcoran in 2010, priced at just under $7.3 million (£5.9m). It was eventually bought by the Bray Children's Trust for the knockdown price of just less than $5.7 million (£4.6m). The trust renovated the manse and sold it on in 2013 for $8.6 million (£7m).
Shortly before US Marshals seized the Palm Beach property, agents swooped in and confiscated the fraudster's six-berth superyacht, Bull. Bernie's company acquired the 88-foot yacht in 2007, so he didn't get to enjoy the floating home, which had a list price of $7.8 million (£6.3m), for all that long. After the craft was seized in 2009, US authorities struggled to find a buyer and it was finally sold in 2015 for a bargain $1.9 million (£1.5m).
As we've mentioned, the contents of Bernie's properties were auctioned off over three sales in 2009 and 2010. Much of the furniture from the Palm Beach property's great room and dining area is displayed here at the final Florida event. Miami antiques dealer Alan Richardson bagged the most choice pieces, spending a total of $300,000 (£243k) on a number of items, including an oil painting by New York artist Alan Katz.
Intriguingly, Bernie had something of an obsession with bulls. The bull is, after all, a symbol of optimism in the stock market, which could explain the crooked financier's fondness for all things oxen. As well as naming his superyacht after the stubborn, full-steam-ahead animal, Bernie's homes were full of paintings, statues and figurines depicting the beast.
Completing the Madoffs' property portfolio was this apartment in the jet-set French Riviera. Located in Cap d'Antibes' posh Château des Pins development, which consists of 24 units across seven villas, the holiday home was bought in the early 2000s by the couple for an undisclosed price.
Consisting of three bedrooms, the upper-level apartment was confiscated and sold by the French authorities in 2009 to a Russian businessman for $1.3 million (£1m) according to Guillaume Turquois, the agent who represented Bernie in the property's purchase. Labelled a “financial serial killer” in the recent Netflix documentary, Bernie was handed a sentence to match on 29 June 2009, after pleading guilty to 11 federal crimes including wire fraud, mail fraud, perjury and money laundering.
Landing a 150-year stretch behind bars, Bernie was incarcerated in the Butner Federal Correctional Complex in North Carolina. After more than 11 years of imprisonment, Bernie succumbed to kidney failure on 14 April 2021. The United States Attorney's Office announced that more than $4 billion (£3.3bn) will be eventually returned to victims of Madoff's Ponzi scheme under the Madoff Victim Fund. The latest distribution of the payments was made in September 2022, with $372 million (£303m) paid to those affected by the fraudster's crimes.
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