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Peter Madoff gets 10 years behind bars

Bernie Madoff’s brother sentenced for his role in Ponzi scheme

Peter Madoff, Bernard Madoff’s younger brother, was sentenced to 10 years in prison for his role in his brother’s elaborate Ponzi scheme that bilked billions of dollars from unknowing investors.

In June, Peter, who is 67, pleaded guilty to conspiracy to commit securities fraud. He admitted to falsifying books and records of Bernie’s investment advisement company in an effort to cover up the scheme.

U.S. District Court Judge Laura Taylor Swain sentenced Peter to 10 years in prison—the prosecutor’s recommendation—and ordered him to forfeit $143.1 billion.

"To take his story at face value, he knew that the business operation was a little bit crooked, and he was content to go along with that," Swain said when she sentenced Peter. "We all know that a crooked operation is rarely if ever just a 'little bit' crooked."

Peter, commenting at his sentencing, said, "I am deeply ashamed of my conduct. I accept full responsibility for my actions."

In December 2008, Bernie was arrested for securities fraud after he masterminded one of the largest and longest-running Ponzi schemes in U.S. history. In the end, he cheated his clients out of between $18 billion and $20 billion, according to the trustee working to recover funds for victims. Madoff pleaded guilty to the charges in 2009 and is currently serving a 150-year prison sentence.

Peter’s prison sentence is set to begin Feb. 6, 2013, in a federal prison in New York. He had asked that his term begin after Jan. 19, so he was free to attend his granddaughter’s Bat Mitzvah.

For more InsideCounsel stories about the Madoff scandal, see:

Madoff victims can only file claims for actual losses

Madoff trustee tries to block investor settlement

Former Madoff employee pleads guilty to decades of fraud

Madoff victims receive largest payout yet

Madoff trustee can pay victims $2.4 billion

Madoff trustee asks for $2.4 billion for victims

New York Mets settle with Madoff victims for $162 million

JPMorgan Chase faces $19 billion lawsuit from Madoff victims

 

Contributing Author

Cathleen Flahardy

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