It’s "good-bye, $7 million townhouse, hello seven-by-eight jail cell" for Bernard Madoff. But the family drama continues.

Now that Madoff’s in the slammer after pleading guilty to a $50 billion Ponzi scheme, federal prosecutors will likely hone in on his family and close associates as their next targets.

Target No. 1: Ruth Madoff and her swanky homes.

The wife of the disgraced financier has hired her own attorney as she tries to defend at least $70 million in assets she claims belong to her — not her husband’s victims. The feds are investigating allegations that Ruth and other family members helped hide some of the swindled money. She also reportedly withdrew about $15.5 million just before her husband’s arrest. The LA Times reports that the Securities and Exchange Commission has been working with British banks to perhaps punish firms in the U.K. that helped transfer money to her.

Along with Ruth Madoff, prosecutors may also look at her sons, Andrew and Mark, who directed trading activities, as well as Bernard Madoff’s brother, Peter, who was also his firm’s chief compliance officer. In court Thursday, Madoff took all the blame himself, and apologized for it, saying his family members only worked with the legitimate parts of his business. Prosecutor Lev Dassin said there was no deal for Madoff to plead guilty in exchange for leniency toward others who may have aided his scheme. Many victims and legal experts are incredulous that Ruth and other family members couldn’t have known what was going on. After all, it was a family business.

"This is the highest profile case in the nation, surely, so I can’t imagine this is the last we hear," defense attorney Susan Brune told WCBS-TV in New York. Asked whether Madoff pulled this scheme off alone, Brune said it’s "completely impossible." 

Click here to read wOw’s "Bernard Madoff Psychic Profile: Peggy Rometo on Where the Money Went and More."