Prosecutors Target Madoff Sons, Brother in Tax-Fraud Probe

Prosecutors in Manhattan are pursuing federal tax-fraud charges against Bernard Madoff's brother and sons, the Wall Street Journal (sub. req.) reports.

Madoff's brother, Peter Madoff, and two sons have denied any knowledge of the fraud. And Madoff's sons—Mark and Andrew Madoff—maintain as soon as their father told them about the Ponzi scheme, they reported the fraud to authorities.

A lawyer for Madoff's sons, Martin Flumenbaum, told the WSJ in a statement that the men "continue to cooperate fully with the authorities in their ongoing investigations."

The nature of the potential tax violations isn't clear, according to the WSJ.