Ex-Madoff Trader To Plead Guilty

Nov 17 2011 | 12:39pm ET

Almost three years after Bernard Madoff's Ponzi scheme collapsed, a former trader at his firm will plead guilty to participating in the fraud.

David Kugel is expected to admit he falsified records and trades from the early 1970s until the scheme collapsed in December 2008. He has been cooperating with the investigation and his guilty plea, on a variety of charges, including conspiracy, bank fraud and securities fraud, is part of a deal with prosecutors.

Kugel was a supervisory trader at Bernard L. Madoff Investment Securities' proprietary trading operations. He told prosecutors that the Ponzi scheme, which eventually grew into a $65 billion fraud, began in the early 1970s, two decades earlier than Madoff admitted. Madoff, who also pleaded guilty, was sentenced to 150 years in prison two years ago.

Kugel will be the fifth Madoff employee to plead guilty in the case. Five others have been charged and await trial.

Kugel also faces a $22 million lawsuit from the trustee seeking to recover money for victims of the Madoff fraud.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR