Belfast Telegraph

Monday 21 April 2014

Madoff brother reaches plea deal

Peter Madoff will admit conspiracy and falsifying records in relation to relation to his brother Bernard's business (AP)

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, US prosecutors told a judge.

Peter Madoff, the former chief compliance officer at the private investment arm of Bernard Madoff's business, has agreed to serve a decade in prison, they said.

Peter Madoff also agreed to the criminal forfeiture of 143 billion US dollars (£92 billion) , including all of his real estate and personal property.

The 143 billion US dollars, representing the amount of money believed to have flowed through the business accounts when he was part of the multi-decade Ponzi scheme, is included in a criminal forfeiture agreement, though authorities know that his assets would never approach that figure.

Court papers signed by a federal judge in Manhattan 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.

Assistant US Attorney Lisa A. Baroni wrote in a letter to US District Judge Laura Taylor Swain that, pursuant to a plea agreement with the government, Madoff, 66, had agreed "not to seek a sentence other than 10 years' imprisonment".

Bernard Madoff, 74, is serving a 150-year prison sentence in Butner, North Carolina, after revealing in December 2008 that he cheated thousands of investors of roughly 20 billion US dollars (£13 million) for years, using money from new investors to pay returns to existing clients.

A 171 billion US dollar (£109 billion) forfeiture order entered against Madoff forced him to relinquish tens of millions of dollars in personal property, including real estate, investments and 80 million US dollars in assets his wife had claimed were hers.

The 171 billion US dollars represented the total amount of money that went through the company during the fraud.

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