Monday, October 26, 2009

Lawyer: Death complicates Madoff investment case

The death of Jeffry Picower, accused of profiting more than $7 billion from the investment schemes of his longtime friend Bernard Madoff, will make it more difficult for suing investors to recoup their money, attorneys said.

Picower's wife, Barbara, on Sunday discovered the 67-year-old's body at the bottom of the pool at their oceanside mansion and pulled him from the water with help from a housekeeper, authorities said. He was pronounced dead at Good Samaritan Medical Center at about 1:30 p.m. Palm Beach police are investigating the death as a drowning, but have not ruled out anything on the cause of death.

Picower had been accused by jilted investors of being the biggest beneficiary of Madoff's schemes. In a lawsuit to recover Madoff's assets, trustee Irving Picard demanded Picower return more than $7 billion in bogus profits. In an e-mailed statement Sunday, Picard said only that "litigation will continue."

Jerry Reisman, an attorney representing about 26 victims, said Picower's death does make it more difficult for the trustee to recoup some of the money.

"We won't be able to hear from his own words whether he was complicit," Reisman said.

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