Peter Madoff pleaded guilty today to his involvement in the Ponzi scheme run by his brother, Bernard Madoff. As part of the agreement, Peter Madoff agreed to serve a sentence of 10 years in prison. Federal prosecutors had charged Peter Madoff, who served as the Chief Compliance Officer for Bernard L. Madoff Investment Securities LLC (“BMIS”), with - among other things – conspiracy to engage in securities fraud and falsifying records. In a press release, Preet Bharara, the United States Attorney for the Southern District of New York, stated that “Peter Madoff enabled the largest fraud in human history.”
In related news, the Securities and Exchange Commission also filed a complaint today against Peter Madoff, claiming that he “was responsible for catastrophic compliance failures” and “created the illusory (albeit convincing) facade of a functioning compliance program that allowed [Bernard] Madoff and BMIS to carry out a decades-long Ponzi scheme.” According to its press release, the SEC is seeking financial penalties and a court order disgorging Peter Madoff of any wrongfully obtained monies.
For more information, visit After F.B.I. Arrest, Madoff’s Brother Pleads Guilty and Peter Madoff Pleads Guilty to Fraud.