Madoff Controller Pleads Guilty

Nov 15 2012 | 12:28pm ET

The former controller for Bernard Madoff has pleaded guilty to cooking the firm's books while Madoff was running a $65 billion Ponzi scheme.

Irwin Lipkin, who is 74, denied that he knew about Madoff's fraud. But he still admitted that he doctored Madoff's books and records, inadvertently assisting the scam.

Lipkin, who used a wheelchair at last week's hearing, pleaded guilty to conspiracy and making false statements. He faces up to 10 years in prison when he is sentenced in March.

"While working for Bernie Madoff, I made accounting entries in financial records that I knew were inaccurate," Lipkin said. "These filings helped Mr. Madoff run the Ponzi scheme that harmed thousands of people."

"I would like the court to know that at no time before I retired," nine years before Madoff's fraud collapsed in 2008, "was I ever aware that Mr. Madoff or anyone else at the company was engaged in the Ponzi scheme reported in the media," Lipkin added. "My belief in Bernie Madoff's trading skills was such that I encouraged my own family to invest their money in accounts managed by Mr. Madoff."

Lipkin is currently free on $1.5 million bond. He is the seventh person to plead guilty in the Madoff case, including his son, Eric. Five others still await trial. Lipkin and his son also face a $9.2 million lawsuit filed by the court-appointed receiver in the Madoff case.

Lipkin told U.S. District Judge Laura Taylor Swain that his plea hearing had to be postponed from September due to his ill health. He said he has been hospitalized twice and suffered a bout with pneumonia.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.