Madoff CFO admits fraud involvement

12 August 2009

Frank DiPascali, Bernard Madoff's former deputy, has pleaded guilty to being involved in the Ponzi scheme operated by the investment manager.

DiPascali, who was chief investment officer (CFO) for Madoff, admitted ten charges - including money laundering, securities fraud and conspiracy - at Manhattan Federal Court.

He confirmed his role in helping Madoff carry out the $65 billion fraud, stating that he recorded "fictitious" securities trades and "lied to the SEC [Securities and Exchange Commission] about the activities of the firm".

According to Reuters, DiPascali faces a maximum possible jail sentence of 20 years, as well as a fine of up to $500,000.

He did not identify other people involved in the fraud in court, but is believed to have provided these names to US prosecutors as part of an attempt to be given a lighter sentence.

Madoff pleaded guilty to the crime in March and is currently serving a 150-year prison sentence in North Carolina.

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