Madoff's Brother Pleads Guilty, Faces 10 Years' Jail

By: CNN - Posted by Giang Nguyen
By: CNN - Posted by Giang Nguyen

NEW YORK (CNNMoney) -- Peter Madoff will plead guilty on Friday to conspiracy and falsifying records in connection with his older brother's infamous Ponzi scheme, according to a court filing from Manhattan U.S. Attorney Preet Bharara.

Peter, the former chief compliance officer at Bernard L. Madoff Investment Securities LLC, "agrees not to seek a sentence other than 10 years' imprisonment," Bharara said in a letter to Judge Laura Taylor Swain.

Peter, 66, has also agreed to forfeit all his assets and personal property, Bharara said.

Among other things, Peter Madoff is accused of lying to clients, falsifying investment records and obstructing the IRS. His lawyer didn't immediately respond to a request for comment.
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Bernard Madoff, now 74, received a 150-year sentence in 2009 for orchestrating the largest Ponzi scheme in U.S. history. He is believed to have stolen about $20 billion from thousands of investors to finance an opulent lifestyle in New York City, Palm Beach, Fla., and France.

Peter, along with other Madoff family members, has been sued by Irving Picard, the trustee representing victims of the fraud. Picard alleges that Madoff's firm "operated as if it were the family piggy bank."

A spokeswoman for Picard declined to comment on Peter Madoff's anticipated guilty plea.

The Ponzi scheme was exposed in December 2008 when Bernard Madoff confessed to his sons, Andrew and Mark, who turned him in. Mark committed suicide in December 2010.

Earlier this week, hedge fund manager J. Ezra Merkin, who lost more than $1 billion of his investors' money to Madoff's firm, agreed to pay his clients more than $400 million in compensation.

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