Madoff Partner Pleads Guilty, Denies Knowing Of Ponzi Scheme

Jun 25 2014 | 8:15am ET

A former Bernard Madoff business partner yesterday pleaded guilty to fraud charges—but denied knowing that his longtime friend had been running a $65 billion Ponzi scheme.

Paul Konigsberg, an accountant and the last of the 15 people thus far arrested in the Madoff scam to see his case resolved, admitted that he helped Madoff and Madoff’s CFO, Frank DiPascali, create bogus and back-dated account statements. Prosecutors said that Kongisberg did not intend to assist Madoff in defrauding investors.

“I’m here today to take responsibility for what I did that was wrong,” the 78-year-old told a federal judge in Manhattan. “It is important for me, your honor, to let you know that I was not aware of Madoff’s horrific and evil Ponzi scheme.”

Konigsberg is cooperating with prosecutors in what his lawyer called the ongoing investigation into Madoff’s fraud. He will pay $4.4 million in forfeitures and fines on the falsifying records and conspiracy counts; further details of his plea deal are unclear.

Konigsberg was the only non-Madoff family member to serve as a shareholder of Madoff’s London operation, and Madoff routinely recommended his tax services to clients. He is the 10th person to plead guilty in the case, nine months after his arrest last September.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...