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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.