Financier expected to plead guilty to fraud charges

Disgraced financier Bernard Madoff is expected to plead guilty to 11 charges of fraud carrying a maximum sentence of 150 years, his lawyer said.

The 70-year-old accused of a masterminding a massive ponzi scheme is due to appear before a judge in New York tomorrow.

Yesterday Madoff’s legal representative Ira Sorkin said that it was “a fair expectation” that his client would plead guilty at the session.

He is alleged to have been behind a $50bn (€39.5bn) fraud which took in investors from across the world.

Since being arrested on December 11, Madoff has been under house arrest in his luxury penthouse on Manhattan in New York.

Details of charges made by the Attorney’s office emerged at yesterday’s hearing in lower Manhattan to address a potential conflict of interest between Madoff and his lawyer.

The Sorkin family invested just under $1m (€790,000) with Madoff.

The judge ruled that Mr Sorkin could continue to represent the disgraced financier. Asked if his client would plead guilty tomorrow, Mr Sorkin said: “I think that is a fair expectation.”

Meanwhile, prosecutors filed a “criminal information” charging Madoff with 11 accounts of fraud, money laundering, false statements and perjury.

If found guilty of all counts, Madoff faces a maximum sentence of 150 years imprisonment, a statement from the Attorney’s office read.

“There is no plea agreement between the Government and the defendant,” it added.

In the papers filed yesterday, prosecutors outlined a massive pyramid scheme in which investors’ cash was misappropriated and converted for Madoff’s own use.

To cover up the crime, he repeatedly lied to regulators, it is claimed.

Acting US Attorney Lev Dassin said: “The charges reflect an extraordinary array of crimes committed by Bernard Madoff for over 20 years.

“While the alleged crimes are not novel, the size and scope of Mr Madoff’s fraud are unprecedented.

“As a result, Mr Madoff faces 150 years in prison, mandatory restitution to the victims of his crimes, forfeiture of his ill-gotten gains, and criminal fines.

“The government has not entered into any agreement with Mr Madoff about his plea or sentencing.”

Madoff will appear before District Judge Denny Chin at tomorrow’s session.

Judge Chin said yesterday he would limit the number of victims who would be allowed to speak at the hearing.

He also indicated that he would not be sentencing Madoff for a number of months.

James Cox, professor of corporate and securities law at Duke University, said the lack of plea bargain could indicate Madoff was refusing to cooperate with authorities.

He may be doing this to protect others involved in the scheme or the location of missing billions, it was suggested.

The Attorney’s office appeared to suggest this was the case.

Mr Dassin said: “The filing of these charges does not end the matter. Our investigation is continuing.”