Madoff CFO DiPascali Pleads Guilty to Criminal Charges
Frank DePascali, the former CFO for Bernie Madoff's company, Bernard L. Madoff Investment Securities, LLC, was charged with, and pleaded guilty to, ten criminal counts in federal court this afternoon for his lengthy role in helping Madoff carry out his criminal acts and conspiracy against investors, evading federal income taxes and perjuring himself in testimony before the S.E.C, and a host of other charges.
The 47-pages of criminal charges allege a host of conspiracy, fraud, and other illegal activity, including that DiPascali:
- Conspired with Madoff to create fictitious entries in the books and records of Madoff's firm, and "reduce the risk that the SEC would uncover" that it had "only a handful of securities" for its investment advisory clients and try to reduce the risk that American securities regulators, European accounting firms, and the firm's investment clients would discover their fraud;
- Owes more than $2.15 million in federal income taxes for falsely and fraudulently filing income tax statements that incorrectly reported his taxable income;
- Perjured himself by giving false, voluntary testimony under oath in 2006 before the S.E.C. during the agency's investigation of Madoff's investment firm;
- Engaged in money laundering while transferring money from BLMIS bank accounts in New York to other bank accounts in the United Kingdom;
- Falsified broker-dealer and investment adviser books and records;
- Committed mail fraud and wire fraud
- Engaged in securities fraud and investment adviser fraud
You can read the detailed criminal charges against DiPascali here:
According to Reuters, U.S. District Judge Richard Sullivan denied DiPascali's request to post $2.5 million in bail. Instead, "he was handcuffed and escorted out of court" immediately after entering his guilty plea.
- Madoff Firm's CFO Pleads Guilty, Denied Bail, Reuters (Aug. 11, 2009)
- Madoff's CFO, Pleading Guilty to Criminal Charges, FindLaw (Aug. 11, 2009)
- U.S. Attorney, Southern District of New York
- Marc Mukasey, DiPascali's Criminal Defense Lawyer
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