Now it's clear why Ruth Madoff was riding the subway earlier this week: The Ponzi schemer's wife has come to an agreement with federal prosecutors, leaving her with $2.5 million as she must sell her and her husband's $7 million Upper East Side penthouse, $11 million Palm Beach house, and $3 million Montauk house and many other assets such as yachts. The homes and other assets will be sold, with proceeds going to victims of Bernard Madoff's $65 billion fraud.

Previously Madoff's lawyers tried to argue that Ruth Madoff should keep $70 million, but now she only has $2.5 million that the feds can't tie directly to the fraud. The Post adds, "The agreement -- inked just three days before Madoff faces sentencing of up to 150 years in prison -- offers his wife no protection from collection efforts by other government agencies or other parties, including the bankruptcy trustees seeking funds for his many wiped-out investors." Overall, a judge ordered Bernard Madoff to forfeit $170 billion, including other investments.

Madoff will be sentenced on Monday. While his lawyers have suggested a 12-year sentence, based on his age and life expectancy, prosecutors said, "The sheer scale of the fraud calls for severe punishment." As for Madoff's sons Andrew and Mark, they will not be at the sentencing: ABC News reports that Madoffs are upset that their sons haven't spoken to them since the scandal broke, with a family friend revealing, "Ruth and Bernie are appalled at their behavior. Ruth doted on those boys and their behavior is self-indulgent and inexcusable." Self-indulgent and inexcusable? That sounds familiar.