Peter Madoff, Bernie’s Brother, to Plead Guilty

Bloomberg reports that Peter Madoff, 66, who was Bernard L. Madoff Investment Securities LLC’s chief compliance officer and senior managing director, will plead guilty to one count of conspiracy to commit securities fraud and one count of falsifying records, a prosecutor said in a letter yesterday to U.S. District Judge Laura Taylor Swain in New York.

Prosecutors said Madoff also will agree to forfeit $143.1 billion, an amount based on the total funds that passed through the Madoff firm during his tenure. Peter Madoff, a graduate of Fordham University Law school who began working at his brother’s firm in 1965, has also agreed to forfeit his personal assets, prosecutors said.

'Pursuant to a plea agreement with the government, Peter Madoff agrees not to seek a sentence of other than 10 years’imprisonment', Assistant U.S. Attorneys Lisa Baroni and Julian Moore said in court papers. 'Further, Peter Madoff agrees to the criminal forfeiture of approximately $143.1 billion, including all of his real and personal property'.

Madoff will admit that he made false statements to investors about the firm’s compliance program and the nature and scope of its investment advisory business as part of his role as chief compliance officer, the U.S. said. He will also plead guilty to falsifying business records, prosecutors said. Both charges carry a maximum statutory term of as long as five years in prison and a fine of at least $250,000.

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Peter Madoff, Bernie’s Brother, to Plead Guilty