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.
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