Madoff's trading operation sold, Pang's assets frozen

Castor Pollux Securities will pay up to $25.5 million for the securities-trading operation run by Madoff's brother and two sons. In another case that looks similar to a Ponzi scheme, U.S. District Judge Philip Gutierrez froze the assets of financier Danny Pang, who the SEC alleges defrauded investors of hundreds of millions of dollars.

The trading operation run by Madoff's brother and two sons is separate from the investment advisory operation that is central to the Bernie Madoff case. Trustee Irving Picard says he will use the proceeds from this sale to pay victims of Madoff's scam. The winning bid will be presented to the bankruptcy court for approval on April 30. The $25.5 million is just a small fraction of the billions of dollars Madoff says he stole from thousands of investors. Madoff pleaded guilty and will be sentenced in June.