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Entries in Peter Madoff (3)

Thursday
Dec202012

Peter Madoff Gets 10-Year Sentence for Role in Ponzi Scheme

Rick Maiman/Bloomberg News(NEW YORK) -- Bernie Madoff's younger brother was sentenced Thursday in New York to 10 years in prison for his role in the biggest-ever Ponzi scheme.

Peter Madoff listened as victims of the fraud spoke in court about the damage it had caused; retirees told the judge of their daily struggle to pay the bills after their savings were lost.  

Peter Madoff, 67, served at Bernard L. Madoff Investment Securities as the senior legal counsel and chief compliance officer, according to DealBook, a financial news site published by the New York Times. Madoff the younger pleaded guilty to falsifying records on this brother's behalf, but denied knowing about the Ponzi scheme.

DealBook reports that in a written letter to the court, Peter Madoff's lawyer wrote, "Peter truly believed that his brother was a brilliant securities trader and as a result he encouraged his own family to invest millions of dollars in accounts managed by his brother."

One woman told the judge Thursday that her anger has subsided but she still believes the Madoff brothers and anyone else involved should rot in jail.

DealBook reports that, according to a Madoff bankruptcy trustee, more than $17 billion was lost by the Madoff fraud victims. Just $9.3 billion has been recovered, and only about $3.7 billion has been distributed to victims of the massive swindle.

Copyright 2012 ABC News Radio

Friday
Jun292012

Peter Madoff Pleads Guilty in Brother Bernie's Scheme

Rick Maiman/Bloomberg News(NEW YORK) -- Peter Madoff, the younger brother of Bernard Madoff, was has pleaded guilty to securities fraud related to his brother's infamous Ponzi scheme and will serve 10 years in prison.

"The Madoff investment empire, built on a foundation of deceit, was a house of cards that grew to skyscraper proportions. As Peter Madoff has admitted today, he was one of the chief architects," FBI Assistant Director Janice Fedarcyk said. "Peter Madoff played an essential enabling role in the largest investment fraud in U.S. history. He made a pretense of compliance; he was really about complicity."

A former Bernard L. Madoff Securities LLC chief compliance officer, the 66-year-old agreed to forfeit $143.1 billion, which represents every penny prosecutors believe passed through the firm during the time of the conspiracy. He helped run the firm for nearly 40 years, since 1965. His older brother Bernie is already serving 150 years in prison for a laundry list of financial crimes.

The younger Madoff told the court he was in "total shock" when he learned of his brother's fraud.

"I was shocked and devastated but nevertheless I did as my brother had said, as I had consistently done for decades," he said, apparently reading from a prepared statement. "I knew that the conduct was wrong and I am deeply ashamed."

Peter Madoff is the eighth person to plead guilty in connection with the four-year probe into the fraud scheme, in which $20 billion vanished, costing many investors their life savings.

"Peter Madoff enabled the largest fraud in human history. He will now be jailed well into old age, and he will forfeit virtually every penny he has," Manhattan U.S. Attorney Preet Bharara said. "We are not yet finished calling to account everyone responsible for the epic fraud of Bernard Madoff and the epic pain of his many victims."

Copyright 2012 ABC News Radio

Wednesday
Jun272012

Bernie Madoff's Brother to Plead Guilty

Rick Maiman/Bloomberg News(NEW YORK) -- The brother of con man Bernie Madoff will plead guilty Friday morning to conspiracy to commit securities fraud and falsifying records for his alleged role in his brother's multibillion-dollar Ponzi scheme, prosecutors said Wednesday, and will serve 10 years in federal prison.

Peter Madoff, once the chief compliance officer of Bernie Madoff's investment firm, will be the first member of the Madoff family other than Bernie to be charged in connection with the case. As part of his plea deal, he will agree to forfeit $143.1 billion dollars, "including all of his real and personal property," and not to seek a sentence other than 10 years in federal prison, the maximum allowed for both offenses.

Peter Madoff worked with his older brother for more than 40 years and was in charge of day-to-day operations for the final two decades of the firm's existence. Bernie's wife Ruth and sons Mark and Andrew also worked in the Madoff investment business, but all have denied any knowledge of wrongdoing.

A lawyer involved in the case says the government uses the $143 billion dollar figure so that Peter Madoff will have no claim to any cash or property he earned at any point in his career. It is unclear if the government will allow his wife to retain his New York home, an expansive Park Avenue co-op apartment. The government filing makes no mention of any possible action against Madoff's daughter Shana, who also worked for her uncle's investment operation.

Also still unresolved is whether the government will take any action against Bernie Madoff's son Andrew. In December 2010, Bernie's son Mark was found dead in his New York apartment after committing suicide on the second anniversary of his father's arrest.

Bernie Madoff, now 74, is currently serving 150 years in federal prison for fraud. In December 2008 he revealed to his sons that his investment business was a massive pyramid scheme. The resulting federal criminal complaint alleged that he had defrauded clients of $65 billion over 20 years.

Bernie Madoff was ordered to forfeit $170 billion, believed to be the total amount that had passed through all Madoff accounts. A court-appointed trustee has so far reached agreements to recover more than $9 billion for Madoff investors.

Copyright 2012 ABC News Radio







ABC News Radio