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Madoff admits $50bn fraud scheme | |
(10 minutes later) | |
Disgraced US financier Bernard Madoff has pleaded guilty to all 11 charges surrounding a $50bn (£35bn) fraud. | Disgraced US financier Bernard Madoff has pleaded guilty to all 11 charges surrounding a $50bn (£35bn) fraud. |
Madoff, 70, ran a Ponzi scheme where early investors were paid off with the money of new clients. | |
Prosecutors want him to get a 150-year jail sentence, but he is unlikely to be sentenced for a number of months. | Prosecutors want him to get a 150-year jail sentence, but he is unlikely to be sentenced for a number of months. |
The hearing is also set to allow some of Madoff's thousands of victims to address the court. At least 20 of Madoff's investors have asked to speak. | |
The court hearing is also expected to rule on whether Madoff should be allowed to continue to remain on bail. | |
Since his arrest in December, Madoff has been confined to his luxury Manhattan apartment. | |
"How do you plead?" Judge Denny Chin asked Madoff as the hearing opened in the New York courtroom. | |
"Guilty," he replied. | |
'A genius' | 'A genius' |
A former chairman of the Nasdaq stock market, Madoff has been a Wall Street figure for more than 40 years. | |
You're dealing with the greatest con artist probably in the history of the world Madoff investor Burt Ross, a former town mayor | You're dealing with the greatest con artist probably in the history of the world Madoff investor Burt Ross, a former town mayor |
He is the only person accused in the scandal surrounding his firm, Bernard L Madoff Investment Securities, and his 11 charges include four counts of fraud. | He is the only person accused in the scandal surrounding his firm, Bernard L Madoff Investment Securities, and his 11 charges include four counts of fraud. |
In addition, he has pleaded guilty to three counts of money laundering, making false statements, perjury, making a false filing to the US financial watchdog, and theft from an employee benefit plan. | |
One of Madoff''s victims, Burt Ross, a former mayor of New Jersey town Fort Lee, told the BBC he did not expect to recover a single cent of the $5m he invested. | |
"Bernard Madoff is a genius," said Mr Ross. "You're dealing with the greatest con artist probably in the history of the world. | "Bernard Madoff is a genius," said Mr Ross. "You're dealing with the greatest con artist probably in the history of the world. |
"He created a mystique and associated with extraordinarily well respected and revered people, and so he was given the benefit of the doubt by financial regulators who blew it badly." | "He created a mystique and associated with extraordinarily well respected and revered people, and so he was given the benefit of the doubt by financial regulators who blew it badly." |
Investigators say they are continuing efforts to recover all the money Madoff has stolen, but most commentators - and most of his investors - say it is highly unlikely that any more than a very small amount will be found. | |
Mark Raymond, a lawyer representing some of Madoff's victims, said it would be wrong to think of them all being multimillionaires. | |
Despite widespread press coverage of famous names and a wealthy elite, Mr Raymond, of law firm Broad and Cassel, said many were normal working people, including a retired couple from Atlanta. | Despite widespread press coverage of famous names and a wealthy elite, Mr Raymond, of law firm Broad and Cassel, said many were normal working people, including a retired couple from Atlanta. |
"He's 82, she's 78, and they are both looking for work because they have lost everything," he said. | "He's 82, she's 78, and they are both looking for work because they have lost everything," he said. |