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Madoff brother pleads guilty in connection with Ponzi scheme

Peter Madoff [Bloomberg profile], brother of disgraced financier Bernard Madoff [JURIST news archive] pleaded guilty [press release] Friday on charges connected with Bernard Madoff's multibillion dollar Ponzi scheme. He agreed to serve 10 years in prison and give up all of his assets in exchange for permission to remain free until the US District Court for the Southern District of New York [official website] issues the final sentence on October 4. Peter Madoff expressed his regret and apologized in court. He also stated that he did not know about the scam until his brother told him about it in December 2008. However, he still assisted his brother in sending money to favored people including friends and family members. During the hearing, Peter Madoff admitted that his investment advisory business was a sham. He was released on a $5 million bail. Bernard Madoff was sentenced in June 2009 to 150 years in prison on security fraud charges [JURIST reports]. He had pleaded guilty [JURIST report] in March 2009 to all 11 charges of security fraud.

Last Friday, a New York judge approved [JURIST report] a $410 million settlement agreement between hedge fund manager Ezra Merkin and the state of New York in a lawsuit connected with the Bernard Madoff Ponzi scheme. The case against Merkin was filed in 2009, accusing him of directing funds into Madoff's Ponzi scheme and charging him with violations of the Martin Act, General Business Law § 352 and Executive Law § 63(12). In March, Madoff trustee Irving Picard and the owners of the New York Mets reached [JURIST report] a $162 million settlement for victims of the Ponzi scheme to avoid a trial.

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