Debbie and Andrew Madoff divorce updates, 2010: they and Madoff grandchild get sued by trustee Picard

Debbie Madoff is still not divorced from Andrew Madoff even though she tried to commute a separation agreement to a divorce in 2008 on the same day that her father in law Bernard Madoff was cuffed. But I bet you she wishes she had never married Andrew, some days. The latest trial and tribulation she has to endure from that marriage is to watch helplessly as Irving Picard, the trustee for the bankruptcy of Bernard L Madoff Investment Securities, goes ballistic and start suing everybody and their mother, grandmother, grandchildren, wife, ex wife, banker and everybody in between – including Debbie and Andrew. Among other things he wants $2 million back from Debbie and Andrew that Bernie gave them for their foundation, the Deborah and Andrew Madoff Foundation. Says the Wall Street Journal:

Late Wednesday, Mr. Picard and Mr. Nisselson also sued the Mark and Stephanie Madoff Foundation for $2 million it allegedly received from Bernard and Ruth Madoff’s bank account in December 2007. In yet another lawsuit, the Deborah and Andrew Madoff Foundation was sued for $2 million that Bernard Madoff allegedly wired to the organization from a Lehman Brothers account.

But that is not all. He is also seeking about a quarter of a million dollars that Andrew gave Debbie to tide her over pending the outcome of the divorce. Says the WSJ:

Mr. Picard is seeking $248,000 from Andrew Madoff and his wife, Deborah, who filed for divorce around the time of Bernard Madoff’s arrest in December 2008, and their minor children, identified as A.M. and E.M, according to the lawsuit. The divorce hasn’t been finalized.About $80,000 each was allegedly transferred to Deborah, A.M. and E.M. from a bank account of Mr. Madoff and his wife, Ruth, according to the lawsuit. Mr. Picard is seeking the money in conjunction with Alan Nisselson, the trustee overseeing Bernard and Ruth Madoff’s personal bankruptcy.

Picard even is roping Citibank and a number of other financial institutions into his wild lawsuit frenzy. According to WSJ, that is because he has a Saturday deadline to commence these suits. Read more here.