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Madoff to be sentenced for duping investors
29 Jun 2009Crooked financier Bernard Madoff will be sentenced today for swindling investors out of billions of dollars.
The 71-year-old American admitted masterminding a massive "Ponzi" pyramid scheme that duped thousands of investors.
Madoff, who previously enjoyed a respected, high-profile Wall Street career, faces the prospect of spending the rest of his life behind bars.
Prosecutors have demanded that the fraudster be sentenced to 150 years imprisonment for his crimes. But Madoff's lawyers have suggested that 12 years would be sufficient punishment.
He pleaded guilty in a New York court in March to 11 charges of fraud, perjury and false reporting.
The fallen financier, a former chairman of the Nasdaq stock exchange, apologised for his actions, claiming the fraud began in the 1990s in response to the pain of recession.
He told the court he was "deeply sorry and ashamed" about his crimes.
He said he knew the fraud was "wrong" and "criminal" but added: "I believed it would end shortly and I would be able to extricate myself and my clients from the scheme."
As time went on it proved "difficult" and then "impossible" to end, he said.
Madoff told the court: "As the years went by, I realised my risk, and this day would inevitably come."
Madoff explained in court how he conducted the fraud.
He said the pyramid scheme operated alongside a legitimate part of the business run by his sons and brother.
Accepting his pleas, judge Denny Chin remanded Madoff in custody at New York's Metropolitan Correctional Centre.
Under the investment fraud, more than 50 billion dollars of clients' money was pumped into the Ponzi scheme under the pretence it was being invested in securities.
Instead the money was deposited in bank accounts and used periodically to pay out to other investors to maintain the impression they were making steady returns.
When the scam was exposed, Madoff claimed to hold 65 billion dollars worth of client money relating to 4,800 investors.
In reality, only around one billion dollars was left with his firm.
Most of the missing money has not been located although prosecutors have set out about seizing assets such as property and boats.
Madoff and his wife Ruth lived a life of luxury, with homes in Manhattan, the Hamptons and Palm Beach, Florida.
He was known for his charitable work and until his arrest in December he was seen as a champion of transparency and integrity.
His investors included Madoff's friends and neighbours, as well as charities and banks such as HSBC and Abbey owner Santander.
British businesswoman Nicola Horlick hit the headlines when it emerged she managed Bramdean Alternatives, which had 9% of its finds invested with Madoff's scheme.
