Tuesday, 30 June 2015
Last updated 1 hour ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…