BREAKING: Bernard Madoff's Brother Peter To Plead Guilty, Forfeits $143 Billion, Will Serve 10 Years
Bernard Madoff's younger brother, Peter, is expected to plead guilty to criminal charges and has agreed to go to prison for 10 years, in the first admission of wrongdoing by a family member in a multibillion-dollar investment business that turned out to be "just one big lie."
The collapse 3½ years ago of Bernard Madoff's Ponzi scheme wiped out the life savings of hundreds of investors, caused losses at funds and banks all over the world, and triggered a criminal investigation that has resulted in the guilty pleas of seven people, including Bernard Madoff.
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 multi-decade Ponzi scheme, is included in the criminal forfeiture agreement, though authorities know that Peter Madoff's assets would never approach that figure.
Peter Madoff, 66 years old, is expected to plead guilty to two charges at a hearing Friday in Manhattan federal court, including falsifying the records of an investment adviser and a broad conspiracy count to commit securities fraud and other crimes, according to a letter sent to U.S. District Judge Laura Taylor Swain and filed in court on Wednesday.
However, Peter Madoff, the firm's chief compliance officer, isn't expected to admit to knowing about the fraud itself. Instead, he is expected to admit to conduct that enabled the fraud to continue, even if he didn't know new investor money was being used to pay older investors or that no trading was being conducted at the investment firm.
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From our Madoff archives:
Madoff Trustee Sues JPMorgan For $6.4B: "They Were At The Very Center Of Fraud"
BUSTED: SEC's Top Lawyer Sued By Madoff Trustee In Clawback Suit
Bernie Madoff, Allen Stanford Tried To Ensnare Libya's Gadhafi In Ponzi Scheme
The Madoff Liquidator - CBS 60 Minutes Video
Mark Madoff Found Dead Of Apparent Suicide - Did The Sons Know?
Madoff: Banks Knew I Was a Crook (NYT Interview)
Citigroup Saw Warning Signs, Knew Of Madoff Fraud; Picard Suit Wants $430M
No Bailout For Bernie: Madoff Gets 150 Years
Harry Markopolos: "The Only Job I Would Take At The SEC Is Chairman" (VIDEO)
Harry Markopolos: “Don’t Trust Your Government”
Tales From The Banking Cesspool: Madoff & The Unethical JPMorgan
Complete Interview of Harry Markopolos On CBS 60 Minutes
JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Schemer As a Client
Jun 27, 2012 at 8:09 PM
Reader Comments (4)
"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 multi-decade Ponzi scheme, is included in the criminal forfeiture agreement, though authorities know that Peter Madoff's assets would never approach that figure."
Got that? n addition to prison, a criminal has to pony up more than he "made" committing the financial crime. Madoff's victims lost $20 billion, according to the USA Today story.
But when you're an executive in a TBTF bank caught committing a financial crime, the rule of law is not just jettisoned, but shat upon: (1) there's no admission of wrongdoing, (2) there's no jail time (see 1), and (3) the penalties are miniscule compared to the crime. In other words, crime pays--and pays BIG--for TBTF bankers.
Barclays gets caught manipulating upward LIBOR, one of the most important interest rates on the planet, and they're fine is $450 MILLION? LIBOR is the basis for about half of all ARM loans in the U.S., most private student loans, not to mention shitloads of credit cards--not to mention the $500 TRILLION+ market for interest rate derivatives. And the company is fined less that one ONE MILLIONTH of that market?
Anyone who doesn't see that criminals are firmly in charge of entire western governments is a moron. End of story.
http://dailybail.com/home/busted-secs-top-lawyer-sued-by-madoff-trustee-in-clawback-su.html
A story some may have forgotten...