Ex-Madoff Payroll Manager Pleads Guilty

Jun 7 2011 | 1:00pm ET

A former employee of Bernard Madoff has pleaded guilty to falsifying records in the massive Ponzi scheme.

Eric Lipkin. Madoff's former payroll manager, admitted that he created fake records to show non-existent trading positions in some Madoff customer accounts and to submit to the Securities and Exchange Commission. He also admitted to falsely reporting that some people were Madoff employees to make them eligible for retirement benefits and to falsifying records to qualify for a construction loan.

Lipkin is the third former Madoff employee to plead guilty in the $65 billion fraud, following former CFO Frank DiPascali and Madoff himself. His father, Irwin Lipkin, worked for Madoff for more than 30 years, and his mother for more than 20; both have denied any wrongdoing and have not been accused of criminal wrongdoing.

Five other former Madoff employees have been hit with criminal charges.

"I'm very sorry for my conduct," Lipkin told U.S. District Judge Laura Taylor Swain.

Lipkin, who is cooperating with prosecutors, faces up to 70 years in prison when he is sentenced. He pleaded guilty to six counts, including bank fraud, conspiracy and falsifying records of a broker-dealer.

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