Cityfile: New York's Most Notable and Influential

Mark Madoff's Downward Spiral | It isn't easy being the son of Bernie Madoff, clearly. On Wednesday night, a "stressed-out" Mark Madoff got into an argument with his wife, stormed out of the apartment, hopped on his Vespa scooter, and disappeared into the night. Fearing the worst, Stephanie Madoff called the cops to report him missing. But he turned out to be okay. He returned to the apartment the next morning and explained that he'd spent the night at the Soho Grand. And he proved that despite all the psychological pressure he says he's been under—which us supported by the slovenly look he's been sporting in recent months—he's still a Madoff at the end of the day. He reportedly checked into the hotel under a fake name and paid the bill in cash. [NYP]

Madoff Trustee Closes Out the Week with a Bang | When Irv Picard makes a promise, he keeps it. A few days ago, the trustee overseeing the Madoff mess said he planned to file a lawsuit against several other members of the Madoff clan—including Bernie's brother, two sons, and niece—for treating the family firm like a "piggy bank." And today he delivered, filing an action in federal bankruptcy court seeking the return of $199 million.More

More Madoff Suits on the Way | The Madoff show goes on. In an interview that aired on last night's 60 Minutes, court-appointed trustee Irving Picard said he plans to file a civil suit against Bernie sons, Mark and Andy, this week which will seek the return of $198 million. And just so no one in the immediate family feels left out, he'll be suing Bernie's brother Peter and niece Shana, too. [Dealbook]

A CBS News camera crew caught up with Mark Madoff on the streets of Soho yesterday! Bernie's son refused to answer questions, which is hardly surprisingly. But his appearance spoke volumes. More

Andy and Mark May Be Next | More Madoff-related indictments may be on the way, reports Lucinda Franks, who's been covering the case for The Daily Beast (and who happens to be the wife of Manhattan District Attorney Bob Morgenthau). Prosecutors, she says, "are poised to make multiple indictments in the weeks after Labor Day," and "investigators have compiled additional evidence against members of Bernie Madoff's family, specifically his brother Peter Madoff, and his sons Andrew and Mark Madoff." So perhaps the Madoff boys won't get off after all. But it's awfully thoughtful of prosecutors to wait until after Labor Day to bring down an indictment, so the boys can enjoy the rest of their summer vacation, isn't it? [TDB]

Spotted: Mark Madoff Edition | Mark Madoff wasn't at his father's sentencing yesterday, although no one really expected him to be there considering he says he hasn't spoken to his dad since his arrest in December. So where is he? In Nantucket, apparently, where he's doing his best to redeem the family name, according to a Deabreaker tipster:

Apparently Mark Madoff cut our tipster's girlfriend in line at local sandwich shop Something Natural, was rude to the staff, placed his order without putting down his Blackberry and claimed he was "in hurry." Mini Madoff whipped out "a big wad of cash" to pay for his food before running out the door and into a big SUV with blacked windows.

He did leave a tip, though, if that's any consolation. [Dealbreaker]

Ruth Takes a Pass | Subway-riding Ruth Madoff will not be attending her husband's sentencing on Monday, reports ABC News. (Nor will his two sons be there, although that was to be expected given they maintain they haven't had any contact with him since his arrest.) Whether Bernie himself will express remorse is anyone's guess, although the cop who was assigned to guard him during his arrest—and who appears on 20/20 tonight—isn't expecting him a stream of tears and apologies. "He did not seem like the most contrite person I've ever met." [ABC News]

Madoff Boys Slapped With Suit | Bernie Madoff has been sued by a long list of former investors. Now his sons will get to share in the excitement. Two former employees of Bernard L. Madoff Securities have filed suit against Andy and Mark Madoff and claim the two brothers were well aware of the $65 billion Ponzi scheme and made efforts to "cloak the massive fraud of the Madoff investment advisory business." Richard Stahl and Reed Abend are now demanding $2 million in deferred compensation from the Madoff boys. And while it's unlikely the sons could come up with that kind of cash even if they wanted to, Abend, at least, could always resort to extra-legal justice if he's forced to. He's the same ex-employee who allegedly shoved and punched Andy Madoff when he ran into him on the street back in May. [NYDN]

It Ain't Easy Being a Madoff | The new issue of Vanity Fair features a piece on Bernie Madoff's two sons, Andrew and Mark, how much they knew about their dad's vast Ponzi scheme, and what life is like for members of the Madoff family these days. Among the revelations: Neither son has spoken to their father since he was arrested in December, nor have they had any contact with their mother; Andrew's estranged wife uses her maiden name when ordering groceries from FreshDirect; and the parents of classmates of Andrew's daughters at Dalton—"apparently fearful of assassins crouching in vestibules"—aren't too keen on letting their children attend parties at the Madoff home. So in case you were wondering, it still does really suck to be related to the biggest scam artist that has ever lived. [Vanity Fair, Page Six]

Can we interest you in one of Mark Madoff's business cards? Just $4.99 plus $1 for shipping, according to this listing on EBay! We have no idea what you'd do with the business card belonging to the disgraced son of admitted fraudster Bernie Madoff, but if you already have cards from Dennis Kozlowski at Tyco and Ken Lay at Enron, you might as well add it to the collection, no? Oh, and in case you're wondering, if you call the number printed on Mark's card, you'll get an automated message that suggests "trying again later." How optimistic! You may have better luck emailing him. We didn't get a reply when we sent over a little note this morning, but it didn't bounce either, so it's possible that Mark is still online. Developing! [EBay]

The Noose Tightens | Bad news today for everyone connected to Bernie Madoff. An appeals court judge denied a motion by Peter Madoff, Bernie's brother, to overturn a freeze on his assets. And in a separate ruling, a Connecticut judge temporarily froze the assets of Bernie's two sons, as well as execs at several Madoff feeder funds, including Walter Noel and several of his flunkies at Fairfield Greenwich Group. Yes, for Andrés Piedrahita, not only is the party long over, but the club was switched on the lights and blocked off the exits, too. [Bloomberg, Reuters]

• A group of teens who supposedly lost their trust funds to Bernie Madoff's Ponzi scheme have taken responsibility for covering his Palm Beach estate with toilet paper this weekend. [Palm Beach Post]
• More on what Bernie's sons may (or may not have) known about their dad's scheme. [WSJ]
• What motivated Madoff to carry out his nefarious plot? According to a former FBI profiler, he has all the characteristics of a psychopathic serial killer. [NYT]
• More on the man charged with defending Madoff, Ira Sorkin. [Crain's]

If there's one thing we can learn from the events of the past few months, it's this: If you insist on going fishing, leave your digital camera at home. Because whether you're the son of an admitted con artist, the clueless governor of Alaska, or the "financial genius" at a bank on the verge of going bust, the photo of you holding up your catch will almost certainly be used against you in the court of public opinion. Better yet, give up fishing altogether. When's the last time you saw a photo of a disgraced politician or mogul carrying a squash racquet?

It's hard to imagine what life must be like right now for Andy and Mark Madoff, the sons of alleged scam artist Bernie Madoff. It's still unclear if the two had any role in helping their dad carry out the $50 billion fraud and if they'll eventually face legal charges. Their reputations have been decimated. Worst of all, they didn't get those Hanukkah gifts that their dad hoped to give them, expensive pieces of jewelry that were intercepted by the authorities (and may ultimately cost Bernie his freedom if a judge rules the gifts violated the conditions of his bail). They didn't get the cash that Bernie had hoped to give them either, the signed checks to friends and family discovered in Bernie's desk drawer when he was arrested. But, as always, we're here to help! More

Madoff Liquidator Scores | Bernie Madoff's high-profile investors may be out of luck, but employees of his firm aren't getting totally left out in the cold. The trustee presiding over the liquidation of Madoff's investment firm convinced a bankruptcy judge this morning to release $28.1 million to cover employee salaries and other expenses. This should ensure that Mark and Andy Madoff—who both worked for their father and claim they had no knowledge of their dad's scheme—get to see a paycheck at the end of the week. Perhaps they can take another fishing trip to celebrate? [NYP]