Madoff Partner To Plead Guilty

Jun 18 2014 | 9:50am ET

An accountant and longtime business partner of Bernard Madoff is set to become the 10th person charged in the massive Ponzi scheme to plead guilty.

Paul Konigsberg is “finalizing the terms of a plea” deal and cooperation agreement, prosecutor Matthew Schwartz told a judge yesterday. It is unclear what the terms of the accord will be, including whether the 77-year-old will face jailtime or how his cooperation can assist prosecutors nearly six years after Madoff’s $65 billion fraud collapsed. With the exception of Konigsberg, no outstanding criminal charges remain against any defendant in the Madoff case, following the conviction in March of five of Madoff’s former lieutenants.

Konigsberg is likely to enter his plea next week.

According to prosecutors, Konigsberg assisted Madoff and Madoff’s finance chief, Frank DiPascali, in creating bogus and back-dated account statements to cover up the scheme. Madoff also routinely recommended Konigsberg’s tax services to clients.

Konigsberg was a long-time Madoff friend and business associate who was the only non-family member to serve as a shareholder of Madoff’s London operation.


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

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.