Bernard Madoff’s younger brother to face 10 years imprisonment for role in Ponzi scheme

Posted by Kristi Scott January 8, 2013 0 Comment 363 views

A United States judge on Thursday stated that Bernard Madoff’s younger brother will face 10 years imprisonment for the part he played in the Ponzi scheme; a scheme that illegally took away billions of dollars from investors.

In June this year, Peter Madoff, 67, accepted the charges against him which included conspiracy to commit securities fraud for falsifying the record and books of the investment advisory company his brother established.

Laura Swain Taylor, a U.S District Court Judge, took up the prosecutors’ advice and sentenced Madoff to 10 years imprisonment. Judge Laura Swain Taylor also demanded Madoff to forfeit what she referred to as “Draconian” $ 143.1 billion, which the judge states would close his “financial ruination.”

The judge said “To take his story at face value, he knew that the business operation was a little bit crooked, and he was content to go along with that. We all know that a crooked operation is rarely if ever just a ‘little bit’ crooked.”

The U.S District Court Judge also said the prison term that Madoff was facing would commence on 6th February 2013. She further added that she would the sentence be served at a federal prison based in Otisville, New York. His lawyers requested that he stays free up to the time of his granddaughter’s Bat Mitzvah which will be on the 19th of January 2013. Madoff was further sentenced to one year supervised release.

At the sentencing, Peter Madoff expressed himself and said “I am deeply ashamed of my conduct and I accept full responsibility for my actions”

Other then his brother, Peter Madoff was the only member of the Madoff family out of the 13 individuals who were criminally charged with connection to the Ponzi scheme. Their brother, Bernard Madoff, aged 74, was charged in 2009 and sentenced to 150 years imprisonment and was also ordered to surrender $ 170.8 billion.

According to the trustee charged with recovering money for the victims, customers were ripped off approximately $ 20 billion by the Ponzi scheme. Two victims of the Ponzi scheme told the judge to show no mercy with Madoff helplessly looking on.

One of the victims, Michael DeVita, said that “I ask that you show the same degree of compassion to Peter Madoff as he showed us: None.”

However, another victim by the name Amy Luria, whose grandmother had appointed Peter Madoff to head her estate, disputed during the hearing that Madoff should face approximately 40 years that he served for his brother’s firm.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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