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Assets of Madoff's brother frozen

  • Story Highlights
  • Lawsuit: $478,009.95 trust overseen by Peter Madoff was lost in Ponzi scheme
  • Peter Madoff was an employee of Bernard L. Madoff Investment Securities
  • Brother's assets have been frozen until an April 3 court hearing
  • Bernard Madoff, 70, pleaded guilty to 11 counts in relation to scheme
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By Emily Anderson
CNN
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NEW YORK (CNN) -- The financial assets of Peter Madoff -- brother of convicted Ponzi schemer Bernard Madoff -- have been frozen until an April 3 court hearing by Nassau Supreme Court Justice Stephen Bucaria, according to an order the judge filed on Wednesday.

The order came in a case filed by 22-year-old law student Andrew Ross Samuels, who claims a trust overseen by Peter Madoff and valued at $478,009.95 set up by his grandfather was lost in Bernard Madoff's Ponzi scheme, according to Samuels' attorney, Steven Schlesinger.

The order did not give any details on Peter Madoff's assets.

In the compliant filed on Samuels' behalf against Peter Madoff, Schlesinger alleges that as a trustee for Samuels' fund, Peter Madoff did not invest the money as "represented" and that his trust was instead "...used to pay fictitious returns to other investors of BMIS [Bernard Madoff Investment Services] as part of the massive Ponzi scheme."

Peter Madoff was an employee of Bernard Madoff Investment Securities.

Bucaria signed the order in response to Samuels initial court filings, temporarily freezing Peter Madoff's assets until a hearing next month. Bucaria did not address the merits of Samuels' allegations or any additional findings in the order.

Schlesinger said he is also representing other members of the Samuels family who claim they, too, lost money in Madoff's scheme.

Peter Madoff's attorney, John Wing, did not immediately return calls seeking comment.

Bernard Madoff, 70, pleaded guilty March 12 to 11 criminal counts, including fraud, money laundering and perjury.

He is in jailed awaiting his June 16 sentencing, at which he faces up to 150 years in prison.

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