Madoff Auction Pulls In Double Auctioneers Hope

The 71-year-old Madoff was sentenced to 150 years in prison after his Ponzi scheme collapsed in the wake of the global recession. The Ponzi scheme was uncovered as investors attempted to withdraw their funds, which is impossible in a Ponzi scheme.

A Ponzi scheme is basically a pyramid scheme. It uses money from later investors to pay returns to the earlier ones. As long as new investors are available, and people don't ask for their money back, the scheme can continue to run.

The Madoff auction was organized by the U.S. Marshals Service, which seized the couple's properties , including a penthouse on Manhattan's Upper East Side and houses in Montauk, N.Y., and Palm Beach, FL. The items were ordered forfeited as part of Madoff's sentencing after he pleaded guilty in the multi-billion-dollar fraud. Proceeds from the auction will be divided among his victims.

Examples of some of the items sold included two pairs of Ruth Madoff's diamond dangle earrings ($70,000 each, with a pre-sale estimate of no more than $9,800 and $21,400), and a set of Madoff's golf irons ($3,600, against a $350-to-$400 estimate).

Many of the items fetched higher-than-estimated prices for an obvious reason: collectability. It's possible that in the future items belonging to Madoff may fetch a pretty penny. However, it's also possible that may not happen.

Some people, rather than looking to make a buck in the future, simply wanted the items, knowing they belonged to Madoff. As the man behind one of the biggest frauds in history, he is certainly infamous.