Madoff Does Not Pass Go

Bernard Madoff pleaded guilty in Manhattan federal court to 11 felony counts related to a $50 billion Ponzi scheme, federal officials announced.

Madoff was jailed, pending sentencing scheduled for June 16 at 1:30 p.m.

Ira Sorkin announced during a Tuesday federal court hearing in New York Madoff’s intention to enter the plea to a variety of charges (see “Madoff Scheduled to Plead Guilty’). Madoff pleaded guilty before United States District Judge Denny Chin to securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC), and theft from an employee benefit plan.

The news was jointly announced by Lev Dassin, the acting U.S. attorney for the Southern District of New York; Joseph Demarest, the assistant director-in-charge of the New York Field Office of the FBI; and Alan Lebowitz, the deputy assistant secretary of the U.S. Department of Labor, Employee Benefits Security Administration (EBSA).

Madoff faces a statutory maximum sentence of 150 years in prison, and is also subject to mandatory restitution and faces criminal fines up to twice the gross gain or loss derived from the offense. In addition, the Criminal Information to which Madoff pleaded guilty includes forfeiture allegations that would require Madpff to forfeit the proceeds of the charged crimes, as well as all property involved in the money laundering offenses and all property traceable to such property.

“Today is one step in an ongoing investigation,” said Dassin, in the announcement. “While we do not agree with all the assertions made by Mr. Madoff today, his admissions certainly establish his guilt. We are continuing to investigate the fraud and will bring additional charges against anyone, including Mr. Madoff, as warranted.”

Dassin added that “there is no agreement whatsoever, public or otherwise, between the government and Mr. Madoff about his plea, his sentence, or the filing of additional charges against him or anyone else,” and that federal officials “continue to trace money and restrain assets so that victims may recover the greatest possible amount on their losses.’