Bernard Madoff's Brother Disbarred for Felony Crime
Peter Madoff, who is currently serving a 10-year prison sentence for violating securities laws while he was chief compliance officer for his brother Bernard Madoff's investment firm, was disbarred by a unanimous Appellate Division, Second Department panel on Wednesday.
Madoff, 68, pleaded guilty in June 2012 to one count of conspiracy to commit securities fraud and other crimes and one count of falsifying books and records of an investment adviser. Madoff maintained that, while he committed crimes, he did not know of his brother's massive Ponzi scheme. He was sentenced to two consecutive five-year terms, one for each count, in December 2012. Bernard Madoff is serving a 150-year sentence.
Peter Madoff admitted that he knowingly approved false compliance documentation for his brother's company and conspired to falsify employment and payroll records.
Madoff also admitted to evading taxes in various ways, including failing to report benefits as income, making gifts to his children as loans even though he did not expect to be paid back and falsely putting his wife on the company's payroll.
Some of Madoff's admitted conduct was equivalent to the New York felony of scheme to defraud in the first degree, requiring his automatic disbarment as of the date of his guilty plea, the Second Department said.
Justices Randall Eng (See Profile), William Mastro (See Profile), Reinaldo Rivera (See Profile), Peter Skelos (See Profile) and Daniel Angiolillo (See Profile) sat on the panel. Matter of Madoff, 2013-05429.