Four years after Bernard Madoff turned the financial lives of many upside down, and continues to make headline news for bankruptcy enthusiasts, Bernard Madoff’s brother, Peter Madoff, pleaded guilty on June 30, 2012 to criminal charges of conspiracy and falsifying records. At common law, conspiracy involved an agreement between two or more people to commit an unlawful act. The conspiracy was committed at the time of the agreement, and no further act was required. Modernly, conspiracy does not require the agreement of two guilty minds. Someone can conspire with law enforcement who is feigns agreement. Today, an overt act in furtherance of the conspiracy is required.
Peter Madoff agreed to serve 10 years in prison and to surrender all assets. Prosecutors presented Peter Madoff as being criminally incompetent and claimed he falsified compliance reports to the Securities and Exchange Commission (SEC).
According to CBS News, when the Ponzi scheme unrolled in 2008, Peter Madoff stated: “I was in total shock.” The investment firm fronted a multibillion-dollar Ponzi scheme. Peter Madoff’s plea deal is expected to result in a 10-year prison term. Peter Madoff plead guilty in the same Manhattan, New York courthouse where Madoff was taken away in handcuffs in 2009 to serve a 150-year sentence.
Peter Madoff is an example what happens to someone who resorts to illegal conduct to repair personal financial situations. In a one-hour court hearing, Peter Madoff described avoiding taxes on gifts, trying to hide millions of dollars from the Internet Revenue Service. Peter Madoff falsified reports for Madoff’s investment advisory business.
Around $20 billion disappeared in the Ponzi scam. According to CBS News, a bankruptcy trustee appointed to recover stolen assets went after Peter Madoff, claiming he financed a high-end lifestyle through fraud. A complaint filed in bankruptcy court claimed the Madoff investment business transferred to Peter Madoff more than $77 million.
Since the fraud revelation of the fraud in 2008, a court-appointed trustee has obtained agreements to recover approximately $9.1 billion. Around $1.1 billion has been returned to Madoff’s victims.
If you are suffering financial difficulties, do not resort to illegal means. Contact an experienced New York bankruptcy attorney to on how to resolve debt problems through bankruptcy options.