Madoff Guilty of Fraud

March 11th, 2009 - 11:55 pm ICT by GD  

Bernard L. Madoff Bernard L. Madoff, the financier accused of causing the biggest Ponzi fraud of all times is to plead guilty to charges that could land him in prison for life. During the hearing Madoff said he will retain his lawyer in spite of conflicting interests and the same lawyer, Ira Lee Sorkin said she expected Madoff to plead guilty. No plea agreement was submitted on Tuesday. Federal prosecutor Marc O. Litt told the judge, “There is no plea agreement with the defendant.”

Madoff faces 11 counts of felony including a securities fraud, an investment adviser fraud, mail fraud, wore fraud, false statements, three counts of money laundering, perjury, false filings with the securities and Exchange Commission and theft from an employee benefit fund. The counts carry a maximum of 150 years in prison under federal law and he must also hand over the proceeds made from the crimes.

Madoff began his scheme in the 1980s, according to prosecutors on November 30, Madoff’s firm Bernard L. Madoff Investment Securities had 4,800 client accounts with a balance reportedly of $64.8 billion. The truth, however, was that the firm had only a small part of that figure.

Prosecutors in a letter said that they intend to seem a criminal forfeiture of $170 billion made from Madoff’s fraud. It represents the proceeds that can be traced back to the charges of the securities fraud, wire fraud, mail fraud and theft from the employee benefits fund. The government also wants a forfeiture of nearly $800 million worth property traced back to the money laundering.

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