Do you actually think Ruth and the two sons don't have cash secreted in another country or in a backyard in Montauk? You can be sure they will not be eating welfare cheese and living in section 8 housing!
Is it a crime in the US if you know of a crime being committed and not telling the authorities ? If so, then Ruth Madoff and sons are guilty too
You are missing the point. I was not discussing whether the kids should be punished or whether they were complicit. I was discussing TheStudent's claim that all their assets should be seized, regardless of guilt. So, let me ask you a simple yes or no question: When someone steals a lot of money, do you think all the assets of their relatives be seized, regardless of guilt? Yes or no.
Ruth was the book keeper of BMIS, she deserves a cell down the hall from 'ole Bernie, as does the FRAUD of a CPA that audited the firm's books. Trust me both had full knowledge of what was going on. What about "Rocco", Bernie's head trader who never executed a trade in 15 years? The sons ran a seperate BD from the Ponzi fund, so their involvement is debateable????
First-off, I am not Student. Madoff sheltered Ponzi funds by "loaning" 10s of millions to his kids. Yes, seize it regardless of complicity in the Ponzi. The 10s of millions given to the children was not salary. Your example regarding claw-back of any money spent at his tailors, etc., is ridiculous. That is a reciprocal agreement; money spent, goods and services received. Arms-length transactions. You're talking out of your ass and attempting a straw-man here. I've voiced my opinion.
The central point of the argument to seize all the assets of Madoff's family is that of deterrence. That it will help to deter future Ponzi schemers, who presumably love their families. If we accept this to be true (it's debatable I admit), then you can see through to the case to be made for net social benefit.