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.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.