Bernie Madoff Employee Pleads Guilty In Massive Fraud; Five More Madoff Employees Face Likely Charges
Another one of Bernie Madoff's employees has pleaded guilty, the feds are saying. Eric Lipkin pleaded to six conspiracy and fraud counts, and agreed to cooperate in the ongoing investigation of the Madoff scam. The Lipkin case demonstrates that Madoff wasn't the only person aware of the scam; that in fact, numerous members of the company were involved in constructing the backbone of the largest financial fraud in history.
From 1996 through 2008, Lipkin and at least six other Madoff employees phonied up account statements, letters to investors, accounting ledgers, reports, and even client names. Lipkin, who handled the payroll, also created a series of fake employees and listed them as receiving salaries and other benefits.
Lipkin, 37, faces 70 years in prison. He has to forfeit his house, $1.4 million in cash, and several investment accounts. One other of the people involved in scam has already pleaded guilty, and the investigation has targeted five more, who have yet to be charged.