May 17 (Bloomberg) -- A vintage Aston Martin automobile previously owned by Peter Madoff, brother of Bernard L. Madoff, will be sold at auction to help pay the jailed con man’s former investors.
Irving Picard, the trustee liquidating the Madoff firm in New York, asked a judge to approve the sale in a court filing yesterday. A 1958 Aston Martin MK III Drop Head Coupe was bought for $267,000 for Peter Madoff by Bernard Madoff’s U.K. firm in 2008 and it wasn’t reimbursed for the expense, according to Picard.
RM Auctions, a car-auction company, will sell the Drop Head at the Monterey Auction in California in August, according to Picard. As many as 3,500 people attend the vintage sports car event, he said.
Charles Spada, a lawyer for Peter Madoff, declined to comment.
Peter Madoff, sued by the U.K. liquidators in 2009 for allegedly enriching himself unjustly by taking the Aston Martin, transferred ownership of the car to Picard on May 4, the trustee said. It is being auctioned with agreement from the U.K. liquidators, he said.
Picard has sought a total of $198.7 million from Peter Madoff and other members of Bernard Madoff’s family, including his son Mark, who committed suicide in December, and niece Shana Madoff Swanson, who all had jobs at the defunct firm, according to court documents.
Peter Madoff was chief compliance officer at Bernard L. Madoff Investment Securities LLC. He was among those to whom Bernard Madoff confessed shortly before his arrest, according to Ira Sorkin, a lawyer for Bernard Madoff. Peter Madoff also co-signed Bernard Madoff’s $10 million bond following the money manager’s arrest.
Picard said in November he was trying to locate assets of the con man’s U.K. unit, including an Aston Martin and a yacht.
Earlier, liquidators of the U.K. firm said a 1964 Aston Martin was delivered to Peter Madoff at his residence in Palm Beach, Florida, in 2008. The U.K. firm, Madoff Securities International Ltd., wire-transferred about $200,000 to the Aston Martin company to buy the car for Peter Madoff, they said in court documents, filed by in 2009.
The main case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-ap-1789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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