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.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note