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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...