US: Madoff lieutenant charged with conspiracy, fraud
Wed Aug 12 04:20:04 EST 2009
NEW YORK, Aug 11 AFP - Bernard Madoff's right-hand man during decades of massive fraud on Wall Street was to be charged on Tuesday with conspiracy and multiple counts of fraud, prosecutors said.
Frank DiPascali, Madoff's top financial aide, was expected to plead guilty before a federal judge in Manhattan after having waived his right to have the case put to a grand jury.
Prosecutors released a list of 10 charges, including conspiracy, securities fraud, falsifying books of a broker, mail fraud, international money laundering, perjury and tax evasion.
The charges carry a combined maximum penalty of 125 years imprisonment, as well as large fines.
The arraignment was scheduled for 3pm local time.
As chief financial officer at Madoff's investment business, Bernard L. Madoff Investment Securities, DiPascali had intimate knowledge of the operation.
US media reports suggested that DiPascali could provide investigators with the breakthrough they need to prosecute others beyond Madoff, who is serving a 150-year prison sentence.
So far, only Madoff and his accountant, David Friehling, have been charged in what may be the biggest fraud in Wall Street history -- a multi-billion-dollar scam whose victims included A-list celebrities and major charities.
Analysts say prosecutors may eventually target others close to Madoff, such as his brother Peter Madoff, chief compliance officer at the fraudulent firm, as well as his sons Andrew and Mark.
Madoff pleaded guilty to all charges, but indicated that he worked alone. It remains unclear to what extent those employed in his firm knew they were committing fraud.
