Madoff's Ex-Accountant Pleads Guilty
MANHATTAN (CN) - Bernard Madoff's ex-accountant pleaded guilty this morning to conspiracy and falsifying records during Madoff's $20 billion Ponzi scheme.
Paul Konigsberg pleaded guilty Tuesday to one count of conspiracy and two counts of falsifying records before U.S. District Judge Laura Taylor Swain.
Konigsberg, 78, a former partner at Konigsberg Wolf & Co., admitted being there when Madoff and his assistant crooked the books.
The SEC sued Konigsberg, of Greenwich, Conn., in Federal Court last September, accusing him of doctoring records for a monthly fee of up to $20,000.
Federal prosecutors then filed a parallel criminal charge against Konigsberg in the same court, accusing him of aiding and abetting the falsification of books from 1992 through 2008.
Konigsberg was arrested last September. He at first pleaded not guilty, claiming he was a victim of Madoff's lies.
He changed his tune after five former Madoff employees were criminally convicted in March. They face sentencing in July.
Konigsberg was described by the SEC as a "longtime accountant for several wealth investment advisory clients of Bernard L. Madoff Investment Securities LLC," according to court documents.
Konigsberg faces up to 30 years in prison and at least a $4.4 million in restitution, according to published reports.
Madoff's scheme fell apart in December 2008 when investors tried to get their money back as the economy tanked. Madoff is serving a 150-year sentence.