TEXT OF STORY
Steve Chiotakis: Bernard Madoff’s right-hand man is behind bars this morning. Madoff’s former chief financial officer pleaded guilty to federal charges yesterday after months of secretly working with the FBI. He revealed new details about how the $65 billion fraud was carried out. Tamara Keith reports.
Tamara Keith: Frank DiPascali told a federal judge in New York that he knew it was criminal but did it anyway. DiPascali detailed how he and Bernard Madoff faked stock trades, sent out fictitious account statements and even created a computer system to make it all seem real.
DiPascali pleaded guilty to 10 felony charges including tax evasion and conspiracy. He faces up to 125 years in prison.
Prosecutors wanted him to remain free until his sentencing next year to help investigators continue sorting through evidence. The judge surprised both the prosecution and the defense by denying a bail agreement saying there was too much of a flight risk. DiPascali was led away in handcuffs.
I’m Tamara Keith for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.