Bernie Goes To The Big House

Mar 12 2009 | 12:56pm ET

Bernard Madoff, once one of the most respected men on Wall Street, pleaded guilty today to running the largest Ponzi scheme in history.

Madoff, who has been free on bail, although restricted to his Manhattan apartment, since his arrest in December, was ordered immediately jailed while he awaits sentencing as a flight risk. U.S. District Judge Denny Chin scheduled the sentencing hearing for June 16. Madoff's first stop is the Metropolitan Detention Center in Manhattan, currently also home to fellow accused hedge fund fraudster Arthur Nadel. Madoff faces as much as 150 years in prison, and will likely have to face the ire of his victims at the hearing; Chin has previously ruled that they will have an opportunity to address the court before sentencing.

Prosecutors are also seeking the forfeiture of some $170 billion they said moved through Bernard L. Madoff Investment Securities since the Ponzi scheme began almost 30 years ago.

Madoff pleaded guilty to 11 counts, including securities fraud, investment adviser fraud, adviser fraud, mail fraud, wire fraud, false statements, perjury, false filings with the Securities and Exchange Commission, theft from an employee benefit plan and three counts of money laundering. The criminal information against him did not include a conspiracy charge; Madoff’s refusal to accept one apparently the stumbling block that kept him from a plea deal.

“I never invested the funds in securities as promised,” Madoff admitted at this morning’s hearing. “As the years went by, I realized my risk and that this day would inevitably come.”

He also apologized during what was described as a solemn, 10-minute speech to the court.

“I am actually grateful for this opportunity to publicly comment about my crimes, for which I am deeply sorry and ashamed,” he said.

The courtroom crowd applauded as Madoff was led out.

Prosecutors and investigators do not believe Madoff’s claim that he acted alone; they are continuing their investigations, albeit without Madoff’s help, in an effort to recover more money for victims as well as to see whether Madoff had help.

Relates Links:

Bernard Madoff's Confession: In His Own Words 


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.