Updated: June 27, 2012 3:57PM
NEW YORK (AP) — The brother of Ponzi scheme king Bernard Madoff is scheduled to plead guilty in New York in the criminal case resulting from the multibillion-dollar fraud, court papers say.
Peter Madoff is the former chief compliance officer at the private investment arm of Bernard Madoff’s business.
Court papers signed by a federal judge in Manhattan on Wednesday show Peter Madoff will plead guilty to conspiracy to commit securities fraud and other offenses including falsifying records. Madoff also agreed to the criminal forfeiture of $143 billion, including all of his real and personal property.
Madoff agrees to serve 10 years in prison. His attorney didn’t immediately return an email seeking comment Wednesday.
Bernard Madoff is serving a 150-year prison sentence in Butner, N.C., after revealing in December 2008 that he cheated thousands of investors of roughly $20 billion for years, using money from new investors to pay returns to existing clients.
Lawyers for a court-appointed trustee recovering money for Bernard Madoff’s investors had said Peter Madoff also was the company’s senior managing director.
The trustee, Irving Picard, said in court papers that Peter Madoff “failed miserably” to meet his responsibilities to monitor the company’s operations and ensure its compliance with federal securities laws.
The court papers said Peter Madoff had received at least $60 million during the fraud and used fake stock trades to make large withdrawals seem justified.