Madoff's brother set to plead guilty in own role in multibillion-dollar fraud

By LARRY NEUMEISTER Published: June 28, 2012
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The brother of Ponzi scheme king Bernard Madoff will plead guilty on Friday to conspiracy and falsifying records, admitting his role in the multibillion-dollar fraud that destroyed the savings of thousands of investors, prosecutors told a judge on Wednesday.

Peter Madoff is the former chief compliance officer at the private investment arm of Bernard Madoff's business.

Court papers signed by a federal judge in Manhattan on Wednesday show Peter Madoff, who had worked with his brother since 1965, will plead guilty to two criminal counts, admitting his role in a conspiracy to commit securities fraud, falsify records of an investment adviser, falsify records of a broker dealer, make false filings with the Securities and Exchange Commission, commit mail fraud and obstruct the Internal Revenue service.

In a plea agreement with the government, Madoff had agreed “not to seek a sentence other than 10 years' imprisonment.”

Madoff also agreed to the criminal forfeiture of $143 billion, including all of his real estate and personal property. The $143 billion, representing the amount of money believed to have flowed through the business accounts during the Ponzi scheme, is included in the forfeiture agreement, although authorities know that Peter Madoff's assets would never meet that figure.

Bernard Madoff, 74, is serving a 150-year prison sentence in Butner, N.C., after revealing in December 2008 that he cheated thousands of investors of roughly $20 billion for years, using money from new investors to pay returns to existing clients.