Madoff’s brother pleads guilty

NEW YORK - Peter Madoff, brother of shamed US financier Bernard Madoff, pleaded guilty on Friday to helping cook the books of the world’s biggest ever Ponzi scheme and accepted a 10-year prison term.

“I apologise to the people I hurt and to my family,” Madoff told a packed Manhattan courtroom after confessing to tax fraud and falsifying documents on behalf of his brother, who is already behind bars.

Madoff, wearing a dark gray suit and glasses as he sat between his lawyers, pleaded guilty to two counts of conspiracy to commit securities fraud and falsifying records of an investment adviser.

Madoff, who was arrested earlier at his lawyer’s Manhattan office, spoke clearly during his statement, but broke down when he apologised toward the end and acknowledged he had been “devastated” by his brother’s massive fraud.

“Until December 2008 I never suspected that my brother stole from anyone. I was in shock and devastated,” he said. “I lost my reputation. My family was torn apart because of my brother.”

He described in detail operations to evade taxes and falsify documents and records. “I accept my responsibility for what I have done. I know my conduct was wrong,” Madoff said.

His bail was set at $5 million in securities and $1 million in cash. Restrictions were placed on his travel and he was required to surrender his passport. A formal sentencing hearing was set for October 4.

“Peter Madoff played an essential enabling role in the largest investment fraud in US history. He made a pretense of compliance; he was really about complicity,” said a statement from FBI Assistant Director Janice Fedarcyk.