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.

  • High spirits battle: Asia tycoons vie for cognac maker Louis Royer

    * Louis Royer valued at about $150 mln - sources * Suntory selling cognac maker as part of portfolio reshuffle * Asia cognac demand seen rising 13 pct in 2015-19 -Euromonitor (Adds graphic link) By Denny Thomas and Khettiya Jittapong HONG KONG/BANGKOK, May 30 (Reuters) - Thai billionaire Charoen Sirivadhanabhakdi is considering buying cognac maker Louis Royer, people familiar with the matter said, potentially locking horns with a Philippine tycoon for the French firm amid a forecast …

  • OIC asked to complete review of peace pact with MNLF
    OIC asked to complete review of peace pact with MNLF

    The Philippine government is asking the 57-nation Organization of Islamic Cooperation (OIC) to finally complete the tripartite review process of the implementation of the 1996 peace agreement with the Moro National Liberation Front (MNLF). The review – snagged  for several years as government had its hands full with the peace process with rival faction Moro Islamic Liberation Front (MILF) – tackles how the 1996 peace pact with the MNLF has been implemented and centers on the three remaining …

  • Alleged Binay dummies appear in Senate probe
    Alleged Binay dummies appear in Senate probe

    Eight of the resource persons ordered arrested by the Senate finally attended the 21st public hearing of the Senate Blue Ribbon subcommittee into the alleged anomalies involving Vice President Jejomar Binay, but the proceedings turned out to be a review of matters previously presented. For over three hours, the subcommittee heard presentations regarding the alleged hidden assets of Binay and the issue regarding the supposed P200 million in kickbacks he received from a deal between the Boy …

  • DOJ wraps up Mamasapano probe
    DOJ wraps up Mamasapano probe

    The Department of Justice (DOJ) is wrapping up its investigation into the “massacre” of 44 members of the Philippine National Police Special Action Force (PNP-SAF) in Mamasapano, Maguindanao last Jan. 25. A joint team of prosecutors and NBI (National Bureau of Investigation) investigators is about to finish the second part,” Justice Secretary Leila de Lima has told congressmen. She was responding to questions raised by former senior police officer and now Rep. Samuel Pagdilao of party-list …

  • APEC meet in Bataan seen to boost tourism
    APEC meet in Bataan seen to boost tourism

    BALANGA CITY, Bataan – More than 2,000 delegates of the Asia-Pacific Economic Cooperation (APEC) and international media outfits are expected to enjoy the splendid coastline of Bagac town, which faces the West Philippine Sea, as they converge for a workshop in this province next month. …

  • DOST opens P54-M research facility
    DOST opens P54-M research facility

    A P54-million research and development facility of the Department of Science and Technology (DOST) was recently opened in Bicutan, Taguig for scientists and researchers to develop technology and techniques to allow Filipino fashion and clothing designers and manufacturers to produce more mainstream products from local, tropical fabrics like piña, banana and abaca. Science Secretary Mario Montejo said the Innovation Center for Yarns and Textiles (ICYT) is the DOST’s flagship effort at reviving …

  • DFA worried about alleged violations of convicted Pinoys’ rights
    DFA worried about alleged violations of convicted Pinoys’ rights

    Philippine embassy officials in Doha have raised their concern with Qatari authorities over coercion and human rights violations in the alleged forcing of three Filipino workers convicted of spying to provide information and confess to the crime. Speaking to reporters, Department of Foreign Affairs (DFA) spokesman Charles Jose yesterday said the embassy has raised the matter during several high-level meetings with Qatari officials and the national human rights committee in Qatar. “Our embassy …

  • US affirms ‘ironclad’ promise to defend Phl
    US affirms ‘ironclad’ promise to defend Phl

    US Defense Secretary Ashton Carter told his Philippine counterpart on Wednesday that Washington’s pledge to defend the Pacific nation remains “ironclad” and called for an end to land reclamation in the South China Sea, officials said. In talks in Hawaii with Voltaire Gazmin, Philippine secretary of national defense, the Pentagon chief “reaffirmed” the strong ties between the two countries and discussed territorial disputes in the contested waters of the South China Sea, where Beijing has been …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options