Madoff Aide's Guilty Plea Could Net More Arrests

Frank DiPascali Jr., who played a key role in Bernard Madoff's huge Ponzi scheme, pleaded guilty to multiple counts of fraud. Sentencing isn't until May of next year, but the former chief financial officer says he will name names, which could mean less prison time and more arrests in the case.

LINDA WERTHEIMER, host:

Bernard Madoff's former chief financial officer has pleaded guilty to securities fraud and other charges. Frank DiPascali Jr. told a federal judge yesterday that he helped Bernard Madoff carry out his Ponzi scheme.

NPR's Jim Zarroli reports.

JIM ZARROLI: DiPascali's guilty plea represents a big potential turning point in the Madoff investigation and could well lead to charges against others who worked at the firm. For years, DiPascali worked by Madoff's side and he was intimately involved with the firm's operations. Jerry Reisman is an attorney representing Madoff victims.

Mr. JERRY REISMAN (Attorney): Frank DiPascali was the middle man, the contact with all of the Madoff accounts. When a Madoff account needed money, they called him. When a Madoff account wanted to do something with respect to their account, they called him.

ZARROLI: At the same time, U.S. officials said, he helped create fake documents and computer records to conceal the fraud. Until now, Madoff has insisted that none of his relatives or coworkers were involved in the Ponzi scheme, but DiPascali told the judge he knew what he was doing was wrong, and he said others at the firm knew what was happening too. As part of his plea bargain, DiPascali has agreed to cooperate with government investigators. Under a deal with prosecutors, DiPascali was supposed to be released on bail after his plea, but in an unusual move Judge Richard Sullivan ordered him sent to jail instead, saying he represented a flight risk.

Jim Zarroli, NPR News, New York.

Copyright © 2009 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.