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Saturday, April 13, 2024 | Back issues
Courthouse News Service Courthouse News Service

Madoff’s CFO Ordered to Forfeit Billions

MANHATTAN (CN) - Federal prosecutors are holding Bernard Madoff's CFO liable for $170.25 billion (sic) in forfeiture. Frank DiPascali pleaded guilty in August to 10 felony counts, including conspiracy and fraud.

DiPascali agreed in his plea to submit to a forfeiture order and has been cooperating with prosecutors, according to the filing.

DiPascali faces up to 125 years in prison for helping to cover up the $64 billion Ponzi scheme at Bernard L. Madoff Investment Securities. Prosecutors have said, however, that DiPascali's cooperation will likely justify a lighter sentence.

Madoff pleaded guilty in March 2009 and is serving a 150-year sentence in a North Carolina prison.

In addition to the $170.25 billion forfeiture orders, the DiPascali family agreed to turn over homes, vehicles and other property worth $6.1 million.

Prosecutors say that in other instances of large-scale fraud, they typically use a "remission" process to sell forfeited assets and distribute the proceeds to victims of the fraud.

Pascali's sister, Joanne, has already turned over more than $470,700.

His family surrendered a luxury yacht, two Mercedes-Benzes and an Audi, which were auctioned in 2009 for $960,500.

Other property, including homes, jet skis, more cars, motorcycles and jewelry, were also surrendered to the U.S. Marshals Service.

Sales of the Madoff family's personal property have fetched more than three times their appraised value "for the benefit of the fraud victims," according to the filing.

DiPascali's wife of 25 years, who is also named Joanne, asked that authorities set aside $285,000 for her and her four children, according to the filing. Prosecutors say they are not contesting the claim, which has been reduced by offsets such as rent and health insurance to $177,982.

DiPascali has been under house arrest through a $10 million bond since February.

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