Madoff Pleads Guilty to Ponzi Scheme
Bernard Madoff, the man who swindled thousands out of $65 billion, plead guilty to 11 criminal charges on March 12th and was sent to jail. Others are being investigated, but no charges have been filed.
Thursday morning, Bernie Madoff appeared in front of U.S. District Judge Denny Chin and plead guilty to his $65 billion Ponzi scheme. As victims looked on from the gallery, he apologized for his wrongdoing explaining "as years went by, [he] realized [his] arrest and this day would inevitably come." One by one, Madoff plead guilty to 11 criminal charges:
- Securities Fraud
- Investment Advisor Fraud
- Mail Fraud
- Wire Fraud
- International Money Laundering to Promote Specified Unlawful Activity
- International Money Laundering to Conceal and Disguise the Proceeds of Specified Unlawful Activity
- Money Laundering
- False Statements
- Perjury
- Making a False Filing with the SEC
- Theft from an Employee Benefit Plan
The 70-year-old faces 150 years in prison for the charges.
In his apology, he maintained that his brother and sons had no role in the scheme and explained that he began getting results for his clients "at any cost" in the early 90's, during poor economic times. After months of investigation, however, SEC officials believe he began the scheme in the 80's.
Earlier in the week Madoff refused to agree to a plea deal with prosecutors and admit to conspiracy, implicating others. Because of his refusal investigators will have no help in identifying others involved in the scheme. According to Dr. Michael Welner, forensic psychiatrist, "the old man falls on his sword" attempting to take the blame for all and save the others involved in the fraud.
Madoff's attorney asked that he be put back on house arrest, but Judge Chin sent him straight to jail saying "he has the incentive to flee" and "the means to flee." SEC officials have located an estimated $950 million of Madoff's assets and continue to search for other funds they are sure he has hidden.
Prosecutors want Madoff to pay $170 billion in restitution to satisfy the 5,000 clients and 13,567 accounts he defrauded.
Ponzi Scheme Attorneys
Getting through the tough financial road that follows after being duped by an investment fraudster can be extremely difficult. Our team of securities attorneys has helped many people get back on their feet in the wake of an investment fraud emotionally and financially.
If you have lost money due to Bernie Madoff's Ponzi scheme or any other investment fraud, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.
