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Politics | 04/24/2009 9:45 am

Bernie Madoff's Right Hand, Frank DiPascali, May Name Names

By The Staff at wowOwow.com
© Getty Images/ AFP

Since his arrest last year, Bernie Madoff has kept quiet about the details of his massive Ponzi scheme, but that may mean nothing if Frank DiPascali gets his way.

For more than two decades, DiPascali, a New York native with a high-school education, helped Madoff bilk investors out of billions, and now that the scam’s gone bust, he may be eyeing a plea deal. As part of the deal, DiPascali would reveal exactly how he and Madoff helped investors, including, according to a Fortune investigation, Jeffry Picower and Frank Avellino, report lower earnings to save money on taxes.

Via Fortune:

According to a person familiar with the matter, DiPascali has no evidence that other Madoff family members were participants in the fraud. However, he is prepared to testify that he manipulated phony returns on behalf of some key Madoff investors, including Frank Avellino, who used to run a so-called feeder fund; Jeffry Picower, whose foundation had to close as a result of Madoff-related losses; and others. If, for example, one of these special customers had large gains on other investments, he would tell DiPascali, who would fabricate a loss to reduce the tax bill. If true, that would mean these investors knew their returns were fishy.

DiPascali does not, however, know anything about other Madoff family members’ involvement, claim sources. Whatever he knows, we’re sure it will be sensational — and make headlines.

10 Reader Comments (so far…) Sign In or Register to comment

C Hardy

They should all go down for what they did to so many people.  It is beyond me how anyone of those can sleep at night knowing they have devistated so many people.  I would even go as far as to say if any of their clients commits suicide b/c of this, they are charged with murder.

There all pond scum!

By C Hardy on 04/24/2009 10:12 am
f p
It’s about damn time someone did. 
By f p on 04/24/2009 10:12 am
Slinky Binx
That plea deal better not include "No Jail Time" as a prerequisite for the information.  He willingly ruined these companies with Madoff and now that he’s pinched, he rolls over to squeal for a sweet deal?  He still better do some serious jail time, he committed all these crimes over a period of 20 years, he needs to pay the price. 
By Slinky Binx on 04/24/2009 10:50 am
f p
I agree. And prison time doesn’t mean Club Fed either.
By f p on 04/24/2009 11:25 am
deber B
f p, unfortunately, since this is a federal white collar crime he will more than likely end up in Allentown, PA level one (cushy digs) of Level Two in Loretta, PA (another cushy pad).
By deber B on 05/01/2009 8:56 am
marta pont
What else is new???? When the boat is sinking…….rats will always provide tons of info and then some.  Just human nature at its worst.
By marta pont on 04/24/2009 1:06 pm
Barbara B
I’m mad because Bernie will be getting 3 square meals a day for life while others may go hunry.
By Barbara B on 04/24/2009 1:26 pm
Marjorie C.
I hope the Feds are protecting DiPascali, because I think he’s a perfect candidate for a heart attack, suicide or sleeping with the fishes.
By Marjorie C. on 04/24/2009 3:47 pm
Tee Zee

"DiPascali does not, however, know anything about other Madoff family members’ involvement, claim sources."

Whether they did or did not they should not be allowed to profit from Bernie’s actions. 

By Tee Zee on 04/24/2009 7:20 pm
Ron thompson
DiPascali is scum of the same scum that his former boss is, and as are his sons, Uday and Qusay…errr, I mean, Mark and Andrew, and his wife, Ruth, who has been doing a mediocre job of pretending she knew nothing.  This is a den of thieves and financial mass murderers and we victims only hope they meet their justice.  Of course, the sleeping watchdogs at the SEC are made of the same scum, but no one can be surprised when government behaves as scum since most of the people in government ARE scum.  That’s right…bail out the CEOs of major corporations who will continue to line their own pockets and those of their trusted henchmen…errr, I mean executives.  Spend the tax dollars of our populace because you have been elected to positions of trust, which you have failed, and continue to spend our money as you see fit. Vote yourselves new pay raises and improved health care plans and retirement golden parachutes while the rest of America scrambles to afford to take their children to the doctor and wonders how they will pay for those visits and needed surgeries.  Stick us with meager Social Security plans that pay nearly nothing toward a dignified old age, while you criminals vote yourselves pension plans that will make you and your families wealthy long after you’ve gone to the grave.  There’s something wrong with a government that sets itself apart from its constituents. Our senators and representatives do not even pay into (or extract funds from) Social Security.  They don’t pay for medical care, even after they’ve left office.  Incredible.  America, wake up and think Bolshevik Revolution, French Revolution…hell, SOME damned revolution!!!  We should be far more tired of the graft and largesse that our elected officials provide themselves while we twitter in the breeze.  The SEC employed "watchdogs" to govern against possible ponzi schemes such as that carried out by Madoff and his whore, Frank DiPascali, and his bastard children, Mark and Andrew, and his brother, Peter.  They all live in the lap of luxury on MY investment!!!!  Mark and Andrew made over 4 million per year in salary and they don’t know what they did for their dad over the course of many years?  What?  How many of us workers in the general public would even HAVE jobs if we didn’t know what our functions for those employers were.  Madoff’s niece, Shana (Peter’s daughter) was also part of this scam—married to none other than one of the SEC watchdogs.  What a laugh.  The bums who had those overpriced jobs were or will be fired.  Big deal.  Am I supposed to feel vindicated because a few nobodies lost their job after failing miserably to guard against the scam that occurred right under their noses?  How many of them were being paid by Madoff?  Harry Markopoulos and others warned the SEC about what might be occurring but they didn’t listen.  Were they simply unimpressed with his information?  Were they paid off to look the other way?  My vote is for the latter.  Nothing coming back to us investors, but you want my tax dollars so you can give them to the CEOs of AIG, GM and Chrysler?  Tell you what….you come up with a bailout for ME and I’ll think about paying that portion of my taxes next April that you want to use to give corporate hyenas their bonuses.  Government of the people, by the people and FOR the people?  I’ve never seen it.
By Ron thompson on 08/12/2009 9:32 am