The trustee for the estate of Bernie Madoff is seeking to seize two luxury condominium units in Greenwich Village from attorney Malcolm Sage and his wife, Lynne Florio. Irving Picard, who has recovered nearly $15 billion for investors defrauded by Madoff’s Ponzi scheme, is targeting the couple’s property at 45 Christopher Street, according to a report by the New York Post.
A court ruling in 2022 determined that Sage was among the few “net winners” of Madoff’s $65 billion fraud, having received $16.9 million more than he invested. Picard claims that because the apartments were never legally merged into one unit, he can take possession of the 1,210- and 902-square-foot units. He values these at a combined $4.6 million. If successful, this would leave Sage and Florio with only a 930-square-foot one-bedroom apartment instead of their current 3,000-square-foot residence.
Sage and Florio have been prominent figures in New York’s social scene but are now representing themselves in court. They argue that dividing the units is not physically possible and accuse Picard of misleading the judge. “A fraud on the court,” they called the clawback effort. Picard’s legal team responded by stating that combining and separating apartments is common practice in New York City real estate and maintains that pursuing Sage’s properties is necessary to enforce the judgment.
This case highlights ongoing efforts by Picard to recover funds for thousands of victims—ranging from celebrities to major institutions—even 17 years after Madoff’s investment fund collapsed. Other members of Sage’s family have already settled similar claims related to profits from Madoff investments. Neither Sage nor Florio faces accusations of criminal conduct or knowledge about Madoff’s fraudulent activities.
The dispute illustrates how repercussions from Madoff’s scheme continue to affect Manhattan’s high-end property market.
