Peter Madoff, Bernie's brother, to plead guilty over Ponzi scheme

Financier Bernard Madoff (L) and his brother Peter Madoff during July 2002 in Montauk, NY. / GI/BM/Getty Images

(CBS/AP) NEW YORK - The brother of Ponzi scheme king Bernard Madoff is scheduled to plead guilty in New York in the criminal case resulting from the multibillion-dollar fraud. Peter Madoff is not pleading guilty to his brother's ponzi scheme, according to a law enforcement source familiar with the case. Instead, Peter Madoff will plead guilty to one count of conspiracy to commit securities fraud and one count of falsifying records of an investment adviser when he appears in Manhattan federal court on Friday morning before U.S. District Judge Laura Swain.

Peter Madoff is the former chief compliance officer at the private investment arm of Bernard Madoff's business.

Court papers signed by Judge Swain in Manhattan on Wednesday show Peter Madoff will plead guilty. According to the plea agreement letter (PDF) submitted by U.S. Attorney Preet Bharara, Madoff "agrees to the criminal forfeiture of approximately $143.1 billion, including all of his real and personal property." That monetary figure represents all the money handled by the firm dating back to the time when Peter, who was the firm's compliance officer, engaged in a conspiracy that will be detailed on Friday, a source told CBS News.

Madoff also agrees to serve 10 years in prison.

His attorney hasn't returned an email seeking comment.  Last year the Wall Street Journal reported that an attorney representing Peter Madoff had denied that his client was involved in the Ponzi scheme, saying "Peter's wife lost millions of dollars that had been invested with his brother and any suggestion that Peter was aware of his brother's fraud is absurd." 

His wife, Marion, took sole ownership of the couple's Palm Beach home in 2006; she sold it last year for $5.5 million.

Bernard Madoff pleaded guilty to fraud and is locked up in prison in Butner, N.C. serving a 150-year sentence.

NY AG: Madoff victim payouts within 3 years
Hedge fund to pay Bernie Madoff victims $405M
"60 Minutes": Crime, punishment, and the shame of being a Madoff

So far, investigators estimate they have recovered or entered agreements to recover more than $9.1 billion, more than half of some $17.3 billion in principal estimated to have been lost in the Ponzi scheme. That money will be distributed to Bernard L. Madoff Investment Securities customers with allowed claims, with $334 million paid out so far.

[concerned_citizen_network]

http://www.youtube.com/watch?v=V9NAxrAx87Y&feature=youtu.be

[honest_pols]

Our Dysfunctional Justice System can easily be bought and sold, thereby permitting murderers, rapists, crooks and other criminals to escape and/or keep their wrongfully-acquired monies, assets, properties, goods, etc. Such makes it appear that our sense of justice is hardly existent.

If our government is ineffective - due to the legal games permitted by unconscionable lawyers and others - then it must be replaced by some more effective and more just system.

If the same continues, then the frustrated, victimized people, will assume their rights to rectify things "outside of mainstream".

[concerned_citizen_network]

Yes that Peter Madoff held on to those Billions for a few years. See him in Bankster Movie with his brother Bernie. Good stuff. http://www.youtube.com/watch?v=V9NAxrAx87Y&feature=youtu.be

[GoldG]

Good to see some Justice. Some Great Clips of Peter Madoff in New Bankster Movie where he is seen establishing the Electronic trading platform with his brother Bernie Madoff. The Bankster Brothers. http://www.youtube.com/watch?v=V9NAxrAx87Y&feature=youtu.be

[joejustjoe]

Well apparently being a dirt bag has a genetic component. I hope he rots in jail just like his POS brother.

[cbs_bull]

"His wife, Marion, took sole ownership of the couple's Palm Beach home in 2006; she sold it last year for $5.5 million."

So, she is able to keep the $5.5 million, correct? Is the justice served for her?

[Jaylah54200]

by hamiltongrad June 27, 2012 7:21 PM EDT
...someday you too may be offended by others who are only taking care of their familes...

Yeah, except I don't need $65 billion to "take care of my family."

And if you're so "forgiving" of others making their comments here, then why do you seem to feel compelled to keep calling attention their posts?

Forgive means forgive, shut up, and move on.

What you're doing is carrying a grudge. A grudge against people you don't even know, just because their opinion doesn't mark in lock-step with your own.

You are the worst kind of hypocrite.

[jwilsonte5]

ya ten years and that guys life over and hand over his money LOL he should run for it for god sake

[honest_pols]

MORE DISRESPECT, MORE ANGER AND MORE FRUSTRATION WITH OUR JUSTICE SYSTEM
GUARANTEES FURTHER BREAKDOWN AND EVEN BREAK-UP OF THESE UNITED STATES

If no lengthy prison terms with hard labour and seizure of monies, assets, properties, personal items, etc, for such scheming crooks ...

then the Law is useless and ...

... There is no fair and just Law - just the Law of the Jungle!

[smittyc]

It is called a plea bargain folks. This all power of the privleged, if he went to a jury trial he would join his brother in jail for life.

[bearfoot33]

plea bargains are not just for the privelidged they're good for all, especially the court system

[hamiltongrad]

There are so many others who have lost money placed in their care, like major banks and companies with stocks and bonds. Why are these people - think family - being singled out ? I smell a hateful heart here, and a lack of ability to forgive. I forgive them, and rest more easily at night, because I know that all of us may some day make a mistake. Judging and punishment without forgiveness is barbaric.

[Jaylah54200]

Such pious talk for somebody who is, himself judging the people making comments.

"Do as I say, not as I do."

[bearfoot33]

i'm glad i did'nt go to hamilton, and it's obvious that you had nothing (ie your future or your retirement) invested with that "family" as you call them, otherwise you might not have been so forgiving!