Kevin Bacon and Kyra Sedgwick Duped by Madoff Scheme

Kyra Sedgwick and Kevin Bacon have been identified as victims of Bernie Madoff’s $50 billion Ponzi scheme that left investors in financial ruin. Kevin Bacon’s rep, Allen Eichorn, told New York Magazine that “I can confirm that they had investments with Mr. Madoff — no further specifics or comment beyond that.”

Rumor has it that Bacon and his wife Kyra have lost nearly everything (excluding their land and the contents of their checking accounts), but Eichorn said that we shouldn’t “speculate or rely on hearsay.”

Well, we shouldn’t, but we want to… I’m sure that’s not the last of the damage to be revealed, with Steven Spielberg’s Wunderkinder Foundation already affected and Jeffrey Katzenberg of Dreamworks reported to have “lost millions” by the Wall Street Journal.

A federal bankruptcy judge released $28 million of Madoff’s assets today (Tuesday) to cover administrative, case-related costs. $883,00 had already been transferred to cover employees’ salaries and health care, and the trustee has been authorized to sell assets to recoup lost investor funds.

Richard Bernard, the trustees’ rep, said that “This is the first step of many to recover assets.”

Progress is good, but it’s sad to think about all of Bacon’s hard-earned Footloose cash going down the drain.