Madoff brother sentenced to 10 years for role in Ponzi scheme News
Madoff brother sentenced to 10 years for role in Ponzi scheme
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[JURIST] Peter Madoff [Bloomberg profile], brother of disgraced financier Bernard Madoff [JURIST news archive] was sentenced Thursday to 10 years in prison [press release] for his role in Bernard Madoff’s multibillion dollar Ponzi scheme. He pleaded guilty [JURIST report] to charges including conspiracy to commit securities fraud, tax fraud, mail fraud and falsifying records of an investment adviser. US Attorney Preet Bharara said:

Peter Madoff was a gatekeeper, who was supposed to guard against fraud, but instead enabled it—facilitating his brother Bernie’s breathtaking scheme by falsifying compliance records and lying to both regulators and clients of BLMIS. The decade he will spend in prison and the disgorgement of his assets are a just result. Our efforts to hold to account anyone and everyone who played a role in this unprecedented Ponzi scheme continue.

Bernard Madoff was sentenced in June 2009 to 150 years in prison on security fraud charges [JURIST reports]. He had pleaded guilty [JURIST report] in March 2009 to all 11 charges against him.

Last month Irwin Lipkin, a former controller of Bernard L. Madoff Investment Securities LLC, pleaded guilty [JURIST report] to falsifying records. Lipkin faces a maximum sentence of 10 years in prison, as well as criminal fines up to twice the gross gain or loss derived from the offenses. In June a New York judge approved [JURIST report] a $410 million settlement agreement between hedge fund manager Ezra Merkin and the state of New York in a lawsuit connected with the Bernard Madoff Ponzi scheme. The case against Merkin was filed in 2009, accusing him of directing funds into Madoff’s Ponzi scheme and charging him with violations of the Martin Act, General Business Law § 352 and Executive Law § 63(12). In March, Madoff trustee Irving Picard and the owners of the New York Mets reached [JURIST report] a $162 million settlement for victims of the Ponzi scheme to avoid a trial.