Shana Madoff, was a rules-compliance lawyer at the firm's market-making arm and the daughter of Bernard Madoff's brother Peter

Shana Madoff, Bernard Madoff's niece of the man who ran Bernard L. Madoff Investment Securities LLC, didn't know of her uncle Bernie's arrest until authorities turned up at his 64th Street apartment in Manhattan, according to her spokesman. But her long tenure in the Madoff market-making business and deep Washington connections have swept her up in the scandal surrounding the firm, whose family bonds were once a source of comfort to investors.
Ms. Madoff was a rules-compliance lawyer at the firm's market-making arm and the daughter of Bernard Madoff's brother Peter, who was head of compliance at the firm.