The trustee for Bernie Madoff’s estate is seeking to seize two Greenwich Village condominium units from attorney Malcolm Sage and his wife, Lynne Florio, as part of ongoing efforts to recover funds lost in Madoff’s Ponzi scheme. Irving Picard, who has already recovered nearly $15 billion for victims of the fraud, claims that Sage benefited by $16.9 million more than he invested with Madoff.
According to a 2022 court ruling, Sage was one of the few “net winners” in the $65 billion fraud. Picard argues that because the couple never legally merged their three condo units at 45 Christopher Street, he can pursue two of them—measuring 1,210 and 902 square feet—for recovery. The combined value of these units is estimated at $4.6 million. If successful, this would leave Sage and Florio with only a 930-square-foot one-bedroom unit instead of the roughly 3,000-square-foot space they have occupied for years.
Sage and Florio are contesting the case without legal representation. They argue that dividing the apartments is not feasible and accuse Picard of misleading the court, stating: “a fraud on the court.” Picard’s team maintains that combining and separating apartments is common in New York City real estate and asserts that pursuing Sage’s holdings remains the only practical method to enforce the judgment.
This action highlights continued attempts by Picard—17 years after Madoff’s investment fund collapsed—to recover assets for thousands of defrauded investors, including high-profile individuals and organizations. Similar claims against Sage’s siblings have reportedly been settled quietly. Neither Sage nor Florio faces criminal charges or allegations that they were aware of Madoff’s fraudulent activities.
The dispute serves as another example of how Manhattan luxury real estate continues to be affected by the aftermath of Madoff’s crimes.
