June 30, 2012- The former No. 2 at Bernard Madoff Securities, Peter Madoff, admitted before the court on Friday that he had committed a number of crimes. He said he did not pay taxes on income that accumulated to over millions of dollars. He placed his wife on the payroll of the business even though she did not work there. He also said he submitted securities filings to regulators that were false.
However, he emphasized that he never, at any time, was aware that Bernard, his brother, was carrying out one of the largest Ponzi schemes in history. The scheme wiped out over $65 billion worth of paper wealth that shattered lives across the globe.
Madoff said he was in shock and saw his world destroyed before his eyes when he was told by his brother about the huge fraud in late 2008. He said he had always admired and looked up to his brother. He later said during the hearing that he thought his brother was just a brilliant trader.
A deal was negotiated prior to his appearance in court. Madoff, who is 66, agreed to spend 10 years behind bars, a sentence the judge still needs to approve. He also agreed to give up all of his assets which include the sale of an Upper East Side Manhattan co-op; one home in Palm Beach, Florida and two on Long Island; and a 1995 Spyder 355 Ferrari.
The Judge accepted Madoff’s plea and allowed him to go free on bail until he is sentence on October 4. He, along with his wife must hand over their passports and not leave the metropolitan area of New York.