Friday, June 29, 2012

FBI says arrests Bernard Madoff's brother Peter Madoff

(Reuters) - The FBI said on Friday it had arrested Peter Madoff, the younger brother of swindler Bernard Madoff, who is serving a 150-year prison sentence for his multibillion dollar Ponzi scheme.

The arrest of Peter Madoff was expected as he is due in federal court in Manhattan later Friday to plead guilty to charges related to his brother's decades-long fraud.

Peter Madoff was arrested at his lawyer's office, Federal Bureau of Investigation spokesman Peter Donald said.

Federal prosecutors on Wednesday revealed in a letter that Peter Madoff had been criminally charged with participating in his brother's fraud. He is the first Madoff family member to be arrested and charged.

The letter, filed in federal court in Manhattan, said Peter Madoff was expected to plead guilty to charges of conspiracy to commit securities fraud and falsifying records as well as other charges. He agreed not to seek a sentence other than 10 years in prison, the letter said.

Peter Madoff also agreed to forfeit about $143.1 billion, including all real and personal property, the letter said. The amount is symbolic, being more than twice the estimated size of the fraud. Read More