Montauk Oceanfront House, Previously Owned By Bernie Madoff, Listed for $17M Montauk By Taylor K. Vecsey The bungalow-style home, which was seized by the federal government after Madoff was arrested for a $65 billion investment scam, has since been updated and improved since the days Madoff and his family spent time there.The house is within 150 feet of the beach — no longer allowed under zoning laws