Madoff brother pleads guilty, accepts 10-year term

Peter Madoff, brother of shamed US financier Bernard Madoff, pleaded guilty Friday to helping cook the books of the world's biggest ever Ponzi scheme and accepted a 10-year prison term.

"I apologize to the people I hurt and to my family," Madoff, 66, told a packed Manhattan courtroom after confessing to tax fraud and falsifying documents on behalf of his brother, who is already behind bars.

Madoff, wearing a dark gray suit and glasses as he sat between his lawyers, pleaded guilty to two counts of conspiracy to commit securities fraud and falsifying investment records.

"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," said prosecutor Preet Bharara.

Madoff, who was arrested earlier at his lawyer's Manhattan office, spoke clearly during his statement, but broke down when he apologized toward the end and said he was initially shocked and horrified by his brother's fraud.

"Until December 2008 I never suspected that my brother stole from anyone. I was in shock and devastated," he said. "I lost my reputation. My family was torn apart because of my brother."

Madoff said he was taking Xanax and consulting doctors because of stress tied to the collapse of his brother's huge fraud, though judge Laura Taylor Swain considered him "fully competent to plead guilty."

He described in detail operations to evade taxes and falsify documents and records, saying: "I accept my responsibility for what I have done. I know my conduct was wrong."

Madoff's bail was set at $5 million in securities and $1 million in cash. Restrictions were placed on his travel and he was required to surrender his passport. A formal sentencing hearing was set for October 4.

"Peter Madoff played an essential enabling role in the largest investment fraud in US history. He made a pretense of compliance; he was really about complicity," said a statement from FBI Assistant Director Janice Fedarcyk.

Prosecutors say he has agreed to forfeit $143.1 billion, a nominal sum representing the fraud that means all his assets will be seized.

"The Madoff investment empire, built on a foundation of deceit, was a house of cards that grew to skyscraper proportions," said Fedarcyk.

"As Peter Madoff has admitted today, he was one of the chief architects. For decades, he certified that periodic reviews established the firm's compliance with internal and regulatory rules.

"In fact, Peter Madoff conducted no reviews. He certified that his examination of the firm's trading process established its integrity. He did not -- indeed, could not -- conduct any such examination: Despite the facade, the investment advisory business did not actually trade any stocks."

Peter Madoff may have been sentenced, but the hunt for collaborators in Bernard Madoff's schemes is far from over.

"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," said prosecutor Bharara.

Bernard Madoff, a charismatic mogul and once chairman of the Nasdaq stock exchange, is serving a 150-year sentence at a North Carolina jail where he earns $170 a month for prison work.

He took in some $65 billion from thousands of clients over decades, building a reputation as a shrewd investment manager by paying out fake "profits" to some investors by plundering the new cash from others.

Madoff counted charities, major banks, Hollywood moguls and savvy financial players among those who invested in his massive Ponzi investment scheme.

But his pyramid fraud collapsed in 2008, wiping out numerous family fortunes. He was arrested in December that year, and pleaded guilty in 2009.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • N. Korea fires missiles in anger at South-US military drills
    N. Korea fires missiles in anger at South-US military drills

    North Korea fired two short-range ballistic missiles into the sea and vowed "merciless" retaliation Monday as the US and South Korea kicked off joint military drills denounced by Pyongyang as recklessly confrontational. The annual exercises always trigger a surge in military tensions and warlike rhetoric on the divided peninsula, and analysts saw the North's missile tests as a prelude to a concerted campaign of sabre-rattling. "If there is a particularly sharp escalation, we could see the …

  • Couple married 67 years holds hands in final hours together
    Couple married 67 years holds hands in final hours together

    FRESNO, Calif. (AP) — After spending 67 years together as devoted husband and wife, there was no question how Floyd and Violet Hartwig would end their lives — together. …

  • Hijacked Indonesian vessel found in Davao
    Hijacked Indonesian vessel found in Davao

    An Indonesian cargo vessel that was hijacked a month ago in North Sulawesi, Indonesia has been found stuck in the waters off Mati, Davao Oriental, the Philippine Coast Guard (PCG) reported yesterday. PCG spokesperson Armand Balilo said the PCG- Southeastern Mindanao district was informed on Feb. 23 that the M/T Rehoboth was found aground off Barangay Cabuaya. Four personnel from the local PCG district office were sent to verify the report. The vessel was reportedly hijacked by …

  • 'Jihadi John' relatives under watch in Kuwait
    'Jihadi John' relatives under watch in Kuwait

    Kuwaiti authorities are closely monitoring several relatives of "Jihadi John" who live and work in the Gulf emirate where the Islamic State executioner was born, press reports said on Sunday. A number of relatives of Mohammed Emwazi, named as the militant who has beheaded at least five Western hostages, are working in Kuwait and like him hold British citizenship, Al-Qabas newspaper reported. "Security agencies have taken the necessary measures to monitor them round the clock," the paper said, …

  • Military steps up offensive vs BIFF, Abu Sayyaf
    Military steps up offensive vs BIFF, Abu Sayyaf

    Armed Forces of the Philippines (AFP) chief Gen. Gregorio Pio Catapang Jr. has ordered the sustained campaign against the Abu Sayyaf and the Bangsamoro Islamic Freedom Fighters (BIFF) following the successive offensives against the armed groups last week. A total of 24 Abu Sayyaf bandits and two soldiers were killed in recent clashes in Sulu last week. The Joint Task Group Sulu has received information that Abu Sayyaf leader Radulan Sahiron was wounded during one of the encounters but this is …

  • Militants want US Marines pulled out of Negros
    Militants want US Marines pulled out of Negros

    The militant group Bagong Alyansang Makabayan (Bayan) is calling for the pullout of US Marines who arrived in Sagay City, Negros Occidental last Wednesday to train Special Action Force (SAF) commandos and members of the allied forces. The SAF commandos and the allied forces will secure the Asia-Pacific Economic Cooperation (APEC) ministerial meeting in this city. Bayan-Negros secretary general Christian Tuayon said the US troops might violate the human rights of activists, especially those …

  • Interview: Australia says hunt for missing MH370 jet may be called off soon
    Interview: Australia says hunt for missing MH370 jet may be called off soon

    By Matt Siegel CANBERRA (Reuters) - The search for missing Malaysia Airlines Flight MH370 cannot go on forever, Australia's deputy prime minister said, and discussions are already under way between Australia, China and Malaysia as to whether to call off the hunt within weeks. No trace has been found of the Boeing 777 aircraft, which disappeared a year ago this week carrying 239 passengers and crew, in what has become one of the greatest mysteries in aviation history. The search of a rugged …

  • Binay backs house arrest for JPE, GMA
    Binay backs house arrest for JPE, GMA

    Vice President Jejomar Binay yesterday supported proposals to put Sen. Juan Ponce Enrile and former President now Pampanga Rep. Gloria Macapagal- Arroyo under house arrest. “Government prosecutors are opposing house arrest for… Enrile. Binay issued the statement after the 91-year-old Enrile was rushed to the Makati Medical Center on Thursday due to pneumonia. House arrest for him would be the compassionate thing to do,” he added. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options