Madoff’s Wife to Keep Only $2.5M

Ruth Madoff has reached a deal with prosecutors to keep only $2.5 million.

The agreement, approved late Friday by a federal judge, calls for Ruth Madoff to give up more than $80 million in assets, the Wall Street Journal (sub. req.) reports. Earlier, Madoff’s husband, Bernard, scheduled to be sentenced today for running a $65 billion Ponzi scheme, had argued in court papers that his 68-year-old wife should be allowed to keep assets that weren’t connected to his fraud.

Under the agreement, Ruth Madoff will sell properties in Palm Beach, Fla.; Montauk, N.Y.; and Manhattan, the story says. Boats and vehicles will also go on the auction block.

Today, U.S. District Judge Denny Chin of Manhattan will sentence Madoff. Prosecutors want a sentence of 150 years in prison, but it will more likely be 25 to 35 years, lawyers told the Wall Street Journal.

One lawyer told the Wall Street Journal Law Blog that he thinks Chin has a slight pro-defense bias, but the blog cited a Fortune article that concluded he is difficult to pigeonhole when it comes to sentencing.

Updated at 12:48 p.m. to include link to Fortune article.