Madoff deputy charged with 10 criminal counts

on August 11 2009 2:32 PM

Bernard Madoff's longtime deputy Frank DiPascali was charged with 10 criminal counts and is expected to plead guilty later on Tuesday for his role in Wall Street's biggest investment fraud.

The charging document, filed in Manhattan federal court just hours before the scheduled plea proceeding, accuses DiPascali, 52, of conspiracy, securities fraud, investment adviser fraud, falsifying records, money laundering, perjury and other crimes.

DiPascali worked for 33 years in the investment advisory arm of Bernard L. Madoff Investment Securities LLC in New York, many of them as chief financial executive, before the 2008 economic decline exposed a fraud of as much as $65 billion.

Madoff, who swindled large and small investors worldwide over at least 20 years, admitted in a guilty plea in March to having operated a classic Ponzi scheme, a fraud in which early investors are paid with the money of new clients.

DiPascali faces a maximum sentence of 20 years for several of the crimes with which he is charged.

Madoff is in a medium-security prison in Butner, North Carolina, after a judge sentenced him on June 29 to an effective life term of 150 years.

(Reporting by Grant McCool; editing by John Wallace)

More News from IBT MEDIA