Frank DiPascali, the finance chief at Bernard Madoff??s investment advisory business, pleaded guilty to helping his boss carry out a $65bn Ponzi scheme and is helping prosecutors build cases against his accomplices.
DiPascali, 52, pleaded guilty in federal court in Manhattan to 10 counts, including conspiracy, fraud and money laundering. DiPascali has been explaining to prosecutors how Madoff spent two decades committing fraud using money from new clients to pay earlier investors at Bernard L. Madoff Investment Securities LLC.
??I knew I was participating in a fraudulent scheme,? DiPascali told U.S. District Judge Richard Sullivan. ??I knew everything I did was wrong, and it was criminal, and I did it knowingly and willfully. I accept complete responsibility for what I did. I apologize to every victim and to my family and the government. I am very, very sorry.?
Sullivan denied a $2.5 million bail request and ordered DiPascali to jail immediately. DiPascali was led from the courtroom in handcuffs when the two-hour hearing ended. The judge said he may reconsider DiPascali??s bail request.
From the late 1980s until December 2008, DiPascali said, he helped Madoff carry out a fraud. During that time, no purchases or sales of securities took place, he said.
??It was all fake. It was all fictitious and I knew no trades were happening? DiPascali said.
