Madoff Aide's Guilty Plea Could Net More Arrests
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.
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.