Politics | 04/24/2009 9:45 am
Bernie Madoff's Right Hand, Frank DiPascali, May Name Names

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
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!
"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.