Madoff Pleads Guilty, Jailed Facing Up to 150 Years in Prison

Disgraced Wall Street financier Bernard Madoff has admitted he swindled investors around the world in a $50 billion Ponzi scheme that went on for nearly two decades, one of the largest in U.S. history, and is now behind bars facing up to 150 years in federal prison.

Madoff, the 70-year-old former NASDAQ chairman, pleaded guilty this morning in New York City to all 11 charges against him, including securities fraud, mail fraud, investment adviser fraud, international money laundering, perjury, and making a false filing with the Securities and Exchange Commission.

During a federal court hearing, which is still underway as we post this at 11:45 a.m. EST, Madoff told U.S. District Court Judge Denny Chin that his scam began in the 1990s and affected thousands of investors. Madoff, who was arrested in December 2008 but then released and allowed to remain free on bail and on house arrest in his Manhattan penthouse apartment, will remain jailed awaiting sentencing, set for mid-June.

Speaking publicly for the first time since arrest, Madoff told the judge he understood that he could be sentenced to as many as 150 years in prison.

No Plea Bargain

It was somewhat of a surprise that there was no plea bargain reached between Madoff and prosecutors as part of the guilty pleas. Madoff “plead to the sheet,” meaning he admitted each of the charges against him and received no consideration for less prison time or other incentives in return. That’s because Madoff reportedly refused to plead guilty to a conspiracy charge, which would have forced him to admit that he worked in conjunction with others in carrying out his scheme.

Madoff has always contended that he acted alone in ripping off thousands of investors, although that has been challenged by investigators who have said a financial Ponzi scheme of such magnitude could not have been concealed by Madoff from low-level employees at his firm. Madoff has said his sons, who were involved in his investment firm, and his wife had no idea he was pocketing investor cash instead of using it to purchase securities for his clients.

Fallen Financial Giant

Madoff was a pillar of Wall Street in a career that lasted 50 years and placed him among the most respected and well-known members of the financial world. His swift, dramatic fall from grace shocked many, especially given the massive dollar amount attached to his crime.

Some of Madoff’s victims, those who lost their lives savings, college funds, and other monies in his investment programs are expected to address the court and the disgraced investment adviser in court today. Dozens of swindled investors have asked to address the court during the hearing.

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