Madoff employee says scheme began early

Nov. 17, 2011 at 12:26 PM
| License Photo

NEW YORK, Nov. 17 (UPI) -- Bernard Madoff's claim he launched his Ponzi scheme during the recession of the early 1990s has been contradicted by a long-time employee, U.S. officials say.

Federal prosecutors said David Kugel, a former supervisory trader at Madoff's investment firm, is cooperating with authorities and would to plead guilty in Manhattan federal court on Monday, the New York Post reported.

In a letter to the judge, prosecutors said Kugel will admit to conspiring in Madoff's record $65 billion fraud "beginning in the early 1970s through December 2008."

Kugel allegedly made more than $8 million working for Madoff and pocketed more than $13 million in phony profits after investing $25,000 with him in 1977, court papers show.

Kugel faces a sentence of up to 85 years in prison.

Follow us on Facebook, Twitter, and Instagram for more news from UPI.com
Related UPI Stories
share with facebook
share with twitter
Trending Stories