Madoff May Be Nearing Plea Bargain

Mar 6 2009 | 12:23pm ET

Moving closer to a plea bargain with federal prosecutors, accused Ponzi schemer Bernard Madoff has agreed to waive his right to a grand jury review of the charges against him. 

The agreement, filed yesterday by prosecutors and Madoff’s lawyer in New York federal court, is an indication that the accused hedge fund fraudster is close to a deal. His legal team and prosecutors have been in talks about a plea arrangement since his arrest in December on charges that he ran the largest Ponzi scheme in history, with the figure originally put at $50 billion, although some have cast doubt on the number.

Madoff has already partially settled the civil charges filed against him by the Securities and Exchange Commission.

A further step toward a plea bargain could come next week, at a hearing to review potential conflicts of interest on the part of Madoff’s lawyer, Ira Sorkin. Sorkin’s parents had been investors with Madoff until their deaths several years ago, and it is unclear whether Madoff will be allowed to plead guilty if the conflicts issue is unresolved.

Speculation that Madoff was nearing a deal spiked on Wednesday, when the conflicts hearing was postponed just hours after prosecutors had requested it. Prosecutors have until March 13 to bring an indictment against Madoff or hold a preliminary hearing.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note