NEW YORK, Aug. 11 (UPI) -- A former aide for imprisoned financial guru Bernard Madoff pleaded guilty to fraud in New York Tuesday and gave details on Madoff's $65 million Ponzi scheme.
Frank DiPascali, 52, pleaded guilty to 10 counts of fraud, money laundering and falsifying financial records in what The New York Times called one of the biggest frauds in the history of Wall Street.
DiPascali described how he and others created fake bank accounts, shuffled money between accounts, created fake trade blotters, sent out fraudulent statements and kept feeding clients a story that they were making money through Bernard L. Madoff Investment Services, the Times said. All the while, he said, fake wire transfers were sent between Madoff's London and New York offices to create the illusion the investment service was earning commissions from stock trading.
"No purchases or sales of securities were actually taking place in their accounts," DiPascali said. "It was all fake. It was all fictitious. It was wrong, and I knew it was wrong at the time," the Times reported.
DiPascali said he knew nothing about finance when he went to work for Madoff in 1975.
The government and DiPascali have agreed to a bond of $2.5 million, and the government asked for sentencing in May 2010. DiPascali is cooperating with the government.
Madoff was sentenced to 150 years in prison. His auditing accountant, David G. Friehling, has been charged with securities fraud and has pleaded not guilt.
