Madoff Co-Conspirator Pleads, Set To Sing
Fleeced investors may have felt a visceral satisfaction earlier this summer when Bernie Madoff began serving his 150-year jail sentence for running a long-time Ponzi scheme.
But the guilty plea entered Tuesday afternoon by Madoff's long-time chief financial officer, Frank DiPascali, could end up being more relevant to investors who hope to reclaim some of the billions that Madoff stole.
Madoff asserted from the beginning that he was the only one who knew what was going on in his scheme and where the money is/went. But a seven-month federal investigation of DiPascali concluded otherwise.
DiPascali pleaded guilty and is cooperating with federal authorities as they keep hunting down Madoff's stolen riches in off-shore accounts and other hiding places.
"I was loyal to him. I ended up being loyal to a terrible, terrible fault," DiPascali said, according to the Associated Press. He pleaded guilty in U.S. District Court in Manhattan to charges including securities fraud, falsifying records and international money laundering, the AP writes.
DiPascali could be sentenced to up to 125 years in prison but clearly hopes for leniency at sentencing because of his cooperation.
DiPascali, 52, was 18 when he joined Madoff as an assistant and said that he recognized the fraud by the late 1980s or early 1990s, yet carried on.
"I don't know how I went from an 18-year-old kid who just happened to have a job to someone standing before you today," he said.
The millions of dollars he personally pocketed probably made the moral conundrum a bit easier to deal with.
The judge in the case denied bail for DiPascali.
August 11, 2009; 5:03 PM ET
Categories: The Ticker | Tags: Bernie Madoff, Frank DiPascali, Ponzi
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Posted by: Dermitt | August 12, 2009 9:57 AM | Report abuse
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