Frank DiPascali, the finance chief at Bernard Madoff’s investment advisory business, is being charged with 10 crimes related to his boss’s $65 billion Ponzi scheme.
Nobody thinks Madoff was acting alone in his scheme. They already arrested Madoff’s auditor, David G. Friehling.
U.S. Attorney Lev Dassin posted the charges today in a one- page filing on his Web site. DiPascali faces up to 125 years in prison on all the counts. Prosecutors will detail the charges DiPascali will admit before U.S. District Judge Richard Sullivan later today. In a letter to the judge on Aug. 7, Dassin said DiPascali is expected to waive his right to an indictment and plead guilty to charges contained in the information.
Here are the charges against DiPascali:
| Count | Charge | Maximum Penalties |
| ONE | Conspiracy | 5 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $250,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| TWO | Securities Fraud | 20 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $5,000,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| THREE | Investment Adviser Fraud | 5 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $10,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| FOUR | Falsifying Books and Records of a Broker Dealer | 20 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $5,000,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| FIVE | Falsifying Books and Records of an Investment Adviser | 5 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $10,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| SIX | Mail Fraud | 20 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $250,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| SEVEN | Wire Fraud | 20 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $250,000 or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| EIGHT | International Money Laundering To Promote Specified Unlawful Activity | 20 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $500,000, or twice the value of the monetary instruments or funds involved, or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| NINE | Perjury | 5 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $250,000, or twice the gross gain or loss; mandatory $100 special assessment; restitution. |
| TEN | Federal Income Tax Evasion | 5 yrs. imprisonment; 3 yrs. sup. release; fine of the greatest of $250,000 or twice the gross gain or loss; costs of prosecution; $100 special assessment. |
References:
- Charges the Government Expects to File in United States v. Frank DiPascali Jr (.pdf) from the DOJ SDNY
- CNBC Video: Will DiPascali Give Up Others in Madoff Scheme? From Securities Docket
- DiPascali Charged With Conspiracy, Securities Fraud from Bloomberg
