Bernard Madoff’s two sons, brother and niece were on Friday sued for nearly $200m and accused of operating the former broker’s business as a “family piggy bank” by the trustee seeking to recover money for his victims.

The action by Irving Picard, the court-appointed trustee, targets Mr Madoff’s sons, Andrew and Mark, his brother Peter and his niece Shana, all of whom held positions at the firm, which was shut down in December.