Sold! “Cabbage Patch” Couple Buys Madoff’s Plush Pad

Incredible views, outdoor space helped couple get over notoriety of former owner


There's a new family in Bernard Madoff's former Upper East Side penthouse -- and the owners say the panoramic rooftop view helped them get past the the taint of Madoff, who is now in federal lockup for operating the largest Ponzi scheme in history.
Patsy Kahn says her husband Al "was worried about the karma" when they first considered buying the 4,000-square-foot duplex. But she fell in love with the terrace and the view of the Manhattan skyline, and soon her toy mogul husband was on board, too. 

They bought the pad at 133 E. 64th Street for $8.8 million -- $1 million less than its original asking price.

Money from the sale of the apartment will go into the fund designated to reimburse Madoff's thousands of victims.  The contents of the apartment were seized by federal authorities and sold several months ago.

The Kahns, who made a fortune on Cabbage Patch Dolls and Pokemon, have been living in a 4,350 square foot apartment in the  Time Warner Center which is now listed for $3 million, The New York Post reported. The couple told the newspaper they were in the market for a new penthouse with a lot of outdoor space -- and Madoff's pad fit the bill.

Patsy Kahn said they looked at about 10 places before falling in love with Madoff's former digs. She says they'll decorate their new home with their folk art collection and quirky antiques.

The Post said the couple also plans to renovate, and the co-op board and neighbhors are relieved that the taint of the Madoff name will finally be washed off the swanky Upper East Side residence.

One resident, who spoke under condition of anonymity, told the Post that during their interview with Madoff while on he was president of the co-op board, the scam artist spun a bizarre tall tale for no apparent reason.

"We summer in an obscure place. He told us he grew up near there and summered there, too," said the resident, who believes it was an early sign of Madoff's pathological tendencies.

Contact Us