Madoff Trustee Irving Picard and his Chief Counsel David Sheehan Appear in Their First Television Interview  

60 MINUTES Learns Madoff's Sons Trying to Collect Deferred Compensation

Bernard Madoff's two sons, his brother and a niece who collectively made tens of millions in compensation and took "profits" from his massive Ponzi scheme will be sued in the effort to compensate the scam's victims who lost billions.  The suit will be filed by the court-appointed trustee in the case, Irving Picard and his chief counsel David Sheehan, who speak to Morley Safer in their first television interview to be broadcast on the 42^nd Season Premiere of 60 MINUTES Sunday, Sept. 27 (7:00-8:00 PM, ET/PT) on the CBS Television Network.

Madoff 's  sons Mark and Andrew, his brother Peter and niece Shana will be sued for negligence and breach of fiduciary duty in their roles at the company.  "Whether or not they have a criminal problem we will pursue them as far as we can pursue them and if that leads to bankrupting them---then that's what will happen," Picard tells Safer. Click here for an excerpt:

He will seek to  recover money they made from investment accounts they had with Bernard Madoff and the repayment of loans that financed the purchase of several multi-million dollar homes.  "I believe that we can.  The money that went to buy these houses under the law is called fraudulent transfers," says Picard.   All told, Picard and Sheehan say that  well over $150 million was either loaned, paid or transferred to the four family members. 

Mark, Andrew and Peter took home over $80 million in compensation over the period between 2001 and 2008.  The three also over time withdrew over $51 million from the investment accounts they maintained with Bernie Madoff.   What's more, 60 MINUTES has learned that Mark and Andrew are still seeking an additional $90 million in deferred compensation from the now-bankrupt company.

Says Sheehan, "If you were those sons, and you knew what you knew today about where all that money came from wouldn't you be embarrassed to keep that money? They should give it all back and if they don't give it all back, I think we have an obligation to go get it," he tells Safer.  

But Sheehan believes Mark, Andrew and Peter Madoff knew what Bernie Madoff was up to. "My belief is, yes, they knew.  And the reason I believe that is they were officers of these companies, and directors in certain instances as well, and also compliance officers in a very highly regulated environment," says Sheehan.  "So, I think-- clearly, they would have to have known what was going on given their own personal transactions, the longevity of what was happening, and the responsibilities as officers of the company."

The Madoffs have always denied knowing that the Madoff operation was a fraud. In a statement, Mark and Andrew Madoff tell 60 MINUTES that Picard's allegations are "baseless" and that they had "no prior knowledge of Bernard Madoff's crimes" and had "no access to overall financial information."

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Press Contact:   Kevin Tedesco  kev@cbsnews.com