Ponzi Scheme Author's Fate To Be Decided On 16 June

Bernard L. Madoff pleaded guilty in Manhattan federal court to 11 felony counts related to a massive Ponzi scheme. Madoff pleaded guilty before U.S. District Judge Denny Chin to securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts

By None

Bernard L. Madoff pleaded guilty in Manhattan federal court to 11 felony counts related to a massive Ponzi scheme.

Madoff pleaded guilty before U.S. District Judge Denny Chin to securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the U.S. Securities and Exchange Commission (SEC), and theft from an employee benefit plan.

Madoff, 70, faces a statutory maximum sentence of 150 years in prison. He is also subject to mandatory restitution and faces criminal fines up to twice the gross gain or loss derived from the offense.

Additionally, the criminal information to which Madoff pleaded guilty includes forfeiture allegations that would require Madoff to forfeit the proceeds of the charged crimes, as well as all property involved in the money laundering offenses and all property traceable to such property. The statutory maximum sentences for each of the charged offenses are set forth in an attached chart.

-Judge Chin remanded Madoff into custody pending sentencing.-Judge Chin scheduled Madoff’s sentencing for 16 June 2009, at 1:30 p.m.

“Today is one step in an ongoing investigation,” says Lev L. Dassin, the acting U.S. attorney for the Southern District of New York.”While we do not agree with all the assertions made by Madoff today, his admissions certainly establish his guilt.”

“Despite speculation to the contrary there is no agreement whatsoever, public or otherwise, between the Government and Madoff about his plea, his sentence, or the filing of additional charges against him or anyone else.”

“We continue to trace money and restrain assets so that victims may recover the greatest possible amount on their losses. We have been working closely with the FBI, the DOL-EBSA, the SEC, and the SIPA Trustee since the outset of this investigation to achieve this goal, and we will continue to do so. However, because of the nature and length of the scheme, victims may recover only a small fraction of their losses.”

L.D.

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