Thursday, March 12, 2009

Madoff Charged with 11 Criminal Counts

According to, Bernard Madoff was charged with 11 Criminal Counts during is infamous Ponzi scheme that left thousands of investors penniless and two individuals dead.

The counts that Mr. Madoff faces are as follows:

* Securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the U.S. Securities and Exchange Commission, and theft from an employee benefit plan.

* Madoff's lead attorney told a judge in Manhattan federal court on Tuesday that the money manager is expected to plead guilty on Thursday.

* U.S. prosecutors say there is no plea agreement between Madoff and the government, indicating he is unwilling to admit there was a conspiracy.

* The prosecutors say "the size and scope of Mr. Madoff's fraud are unprecedented" and their investigation is continuing.

* The government says Madoff faces up to 150 years in prison if convicted of all charges.

* The government says Madoff is also subject to mandatory restitution payments, fines and forfeiture of ill-gotten gains. The forfeiture sought by the government is more than $170 billion, a figure that has been challenged by Madoff's lawyers.

* The government says Madoff's investment business had about 4,800 client accounts as of November 30. 2008.

* The investment business issued statements for November 2008 reporting accounts held a total of $64.8 billion. In reality, the business "held only a small fraction" of that balance for clients, according to the government.

* Prosecutors contend the alleged scheme lasted from "at least" the 1980s, and Madoff hired numerous employees "with little or no prior pertinent training or experience in the securities industry" to communicate with his investment clients and "generate false and fraudulent documents."

Mr. Madoff faces live in prison.

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