We’ve mentioned in past posts that Abel Automatics Inc., maker of the Abel reel, has their destiny intertwined with the Bernard Madoff scandal.

Abel Holdings LLC owns Abel Automatics – and both Andrew and Mark Madoff are principals for Abel Holdings, with Andrew Madoff listed as the CEO of Abel Automatics Inc.

Loans made to both sons by the elder Madoff are being contested by the court appointed trustee, Irving Picard, and are likely to be considered Ponzi funds eligible for seizure.

Mark Madoff owes his parents $22 million, and Andrew Madoff owes $9.5 million, according to the filing.

CBS News is reporting that civil suits will be filed against both sons to recover the money.

One source says Picard will seek in excess of $50 million – including at least $30 million in loans to the sons. He is not accusing them of wrongdoing; instead his goal is to recapture money diverted from Bernie Madoff’s massive Ponzi scheme.

A judgment against the Madoff sons will require liquidation of assets to repay the victims of the elder Madoff’s avarice. Which assets are unknown – as is the son’s ability to absorb such a loss.

Outside of the spectacle of rich people and their money, our interest is in the fate of the reel company, Abel Automatics Inc – and whether the Madoff assets will be seized by the government, or whether the sons will be allowed an orderly liquidation and repayment of the original loans.

In one case, Abel Reels will be sold to someone else and in the other – the US government owns the banks, the doctors, and is now making some tasty reels – proof of the decline and fall of free market capitalism…

… actually, in either case the company is likely to be sold.

I just wanted to make the Hardy-Grey’s corporation sweat bullets …

Tags: Andrew Madoff, Mark Madoff, Bernie Madoff, Abel Automatics Inc., Abel Holdings LLC, Irving Picard, Ponzi scheme, Hardy reels