Peter Madoff and his daughter Shana are pictured for the first time following Bernie’s death

Peter Madoff – who was jailed for ten years for his role in his brother’s Ponzi scheme – has pictured for the first time following Bernie’s death in prison last Wednesday. 

The younger Madoff was seen walking his dog outside the home in West Palm Beach, Florida, he shares with his wife Marion on Saturday.

The couple’s daughter Shana was pictured Sunday outside her yoga studio in Westport, Connecticut. She worked as a compliance officer for her infamous uncle. She married a former top lawyer with the US Securities and Exchange Commission but the inspector general found no wrongdoing in their relationship. 

Their outings came days after Bernie’s death at the age of 82 while serving a 150 year prison sentence at Butner Federal Correctional Complex last Wednesday. 

Peter was released from home confinement and from federal custody in August last year for his role in the biggest and most devastating Ponzi scheme in history that robbed tens of thousands of victims worldwide of $65 billion.    

He had served about nine years of his sentence after being transferred to home confinement from the Federal Correctional Institution in Miami in November 2019, officials said.

Peter pleaded guilty to falsifying documents and lying to regulators as part of his brother’s Ponzi scheme and was sentenced to 10 years in prison.

His brother Bernard – a former chairman of the Nasdaq stock market – had pleaded guilty to fraud charges after his multi-decade fraud cost thousands of investors roughly $20 billion they had trusted with him. The fraud was first exposed in December 2008.

The older Madoff, 82, pleaded guilty within months and was immediately ordered to begin serving his 150-year sentence. A judge in June denied Bernard Madoff’s bid to be released early from federal prison.     

His widow Ruth was, as of Saturday, still holed up inside the $3.8million Connecticut home where she has been staying since his death.   

The 79-year-old is staying at a home owned by her late son Mark’s first wife, Susan Elkin.  A visitor was seen dropping off a package at the family home on Saturday, but Ruth was nowhere to be seen.

She has not been seen since Bernie died after a year-long battle with kidney disease.  Prison sources said his death was from natural causes.  

Now, it remains unclear who will claim his body or what kind of funeral he will be given. 

The couple’s adult sons, Mark and Andrew, had turned their dad into the feds after he confessed to them that the investment firm he was running was a Ponzi scheme and ‘one big lie’. 

Mark stopped speaking to him and hanged himself in 2010, on the second anniversary of Bernie’s arrest.  

Andrew died from lymphoma in 2014. He’d beaten cancer once but it returned in 2011, after Bernie’s arrest. He blamed his father for his deteriorating health. 

Ruth claimed to have cut Bernie off but journalist Jim Campbell, who had unfettered access to her for years, revealed to DailyMail.com last week that Bernie was still writing to her from prison when he died.  

Before he was jailed, she made a deal with prosecutors to that she’d be allowed $2.5million to pay for his legal fees. She has since reached a settlement with a small group of some of his tens of thousands of victims to pay them $600,000.  It’s a tiny fraction of what he stole – $65billion.  

Madoff, who was born in 1938 in a lower-middle-class Jewish neighborhood in Queens, New York, became a legend in the financial world regarding the story of his rise to prominence. 

His father, Ralph, was a stockbroker and plumber and his grandparents had emigrated to the US from Eastern Europe. 

He and his brother Peter set off for Wall Street in 1960 with a few thousand dollars saved from working as a lifeguard and installing sprinklers.   

Initially, he – along with his brother – ran a business as middlemen between the buyers and sellers of penny stocks. His wife Ruth ran the books and his sons, once adults, went on to become executives.  

‘They were two struggling kids from Queens. They worked hard,’ said Thomas Morling, who worked closely with the Madoff brothers in the mid-1980s setting up and running computers that made their firm a trusted leader in off-floor trading.

‘When Peter or Bernie said something that they were going to do, their word was their bond,’ Morling said in a 2008 interview. 

Madoff raised his profile by using the expertise to help launch Nasdaq, the first electronic stock exchange, and became so respected that he advised the Securities and Exchange Commission on the system. Madoff served as the chair of NASDAQ three times in the 90s. 

But what the SEC never found out was that behind the scenes, in a separate office kept under lock and key, Madoff was secretly spinning a web of phantom wealth by using cash from new investors to pay returns to old ones. 

Authorities say that over the years, at least $13 billion was invested with Madoff. An old IBM computer cranked out monthly statements showing steady double-digit returns, even during market downturns. 

As of late 2008, before his arrest, the statements claimed investor accounts totaled $65 billion. 

The ugly truth: No securities were ever bought or sold.   

Like many of his clients, Madoff and his wife enjoyed a lavish lifestyle. 

They had a $7 million Manhattan apartment, an $11 million estate in Palm Beach, Florida and a $4 million home on the tip of Long Island. They also had another home in the south of France, private jets and a yacht.

But it all came crashing down in the winter of 2008 with a dramatic confession at Madoff’s 12th-floor apartment on the Upper East Side. 

In a meeting with his sons, he confided that his business was ‘all just one big lie’ and that there was no money. 

They ignored his pleas to give him 24 hours to get the family’s affairs in order and turned him in the following day. A lawyer for the family contacted regulators, who alerted the federal prosecutors and the FBI. 

Madoff was in a bathrobe when two FBI agents arrived at his door unannounced on a December morning. He invited them in, then confessed after being asked ‘if there’s an innocent explanation,’ a criminal complaint said. 

Madoff responded: ‘There is no innocent explanation.’ 

He admitted he had been found out when he was unable to satisfy growing client demands to withdraw their investments during the 2008 financial crisis. 

Madoff pleaded guilty in March 2009 to securities fraud and other charges, saying he was ‘deeply sorry and ashamed.’ 

Madoff´s brother, Peter, who helped run the business, was sentenced to 10 years in prison in 2012, despite claims he was in the dark about his brother´s misdeeds.