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Bernie Madoff's Brother to Plead Guilty of Fraud

The brother of Ponzi fraud king Bernie Madoff has agreed to a plea bargain in which he pleads guilty to conspiracy and falsifying records.
By Chana Ya'ar
First Publish: 6/28/2012, 11:57 AM

Wall Street sign outside the stock exchange
Wall Street sign outside the stock exchange
Reuters

The brother of multi-billion dollar fraud king Bernie Madoff has agreed to a plea bargain in which he will plead guilty to conspiracy and falsifying records.

Peter Madoff is set to admit his role in his brother's Ponzi scheme, as well as to the criminal forefeiture of all of his real estate and personal property, totaling some $143 billion.

The money includes sums that came through business accounts while working with his brother on Wall Street, since 1965.

Assistant U.S. Attorney Lisa A. Baroni wrote in a letter to U.S. District Judge Laura Taylor Swain that Madoff, 66, had agreed "not to seek a sentence other than 10 years' imprisonment" as part of the agreement.

According to court papers, Peter Madoff received at least $60 million during the Ponzi scheme, and made large withdrawals seem justified by way of fake stock trades.

His 74-year-old brother, Bernie Madoff, masterminded the Ponzi scheme that defrauded thousands of investors of some $20 billion. Included were numerous Jewish charities and nonprofit organizations, as well as universities -- including Yeshiva University -- and those who invested their life savings.

The elder Madoff is currently serving a 150-year prison sentence in Butner, North Carolina.