Madoff's Brother Gets 10 Years

Dec 21 2012 | 11:05am ET

Bernard Madoff's younger brother has been sentenced to a decade in prison for his role in the $65 billion fraud at his brother's company.

The length of the term was expected; as part of his plea deal, Peter Madoff had agreed to seek no less than 10 years, the maximum allowed by law. But after hearing from Madoff, who admitted to falsifying documents and evading taxes but denies knowing that his brother was running a Ponzi scheme, U.S. District Judge Laura Taylor Swain had some harsh words for the 67-year-old.

She called his claims of ignorance "frankly, not believable," and challenged him "to be honest about all that you have done and all that you have seen."

Madoff, who is only the second person to be sentenced so far more than four years after the fraud collapsed, told Swain that he is "deeply ashamed" of his conduct and that he has "tried to atone by pleading guilty and forfeiting all my assets."

Swain approved that $143.1 billion forfeiture, which she called "draconian." It "seals Peter Madoff's financial ruination."

Swain also sentenced Madoff to one year of probation upon his release. But she also showed some compassion, agreeing both to a delay in his reporting to prison and promising to recommend that he serve his sentence in upstate New York, 70 miles northwest of New York City.

Madoff, who asked for the delay to allow him to attend his granddaughter's bat mitzvah next month, must report by Feb. 6.

Two Madoff victims spoke before the sentencing. One, Michael DeVita, asked Swain to "show the same degree of compassion for Peter Madoff that he showed for us: None."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.