Right normally schools vet this type of stuff out, with the civil cases dating back before 2000 you would think they would've walked a tight rope in hiring him for both boys and girls.
You sound pretty close to the situation...looking like that house will have to be sold, along with his newly renovated Potage Lakes house. Pretty nice if you ask me, but sounds like his investors were the ones who paid for it not him.
My sources are saying he owes a LOT of people money. These are the first of many lawsuits to be filed in the coming days/weeks/months. From my understanding of the situation he is known as the Fairlawn Bernie Madoff.