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

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.