Madoff Victim to Speak at Brother’s Sentencing, U.S. Says

More than 20 victims of Bernard L. Madoff’s fraud wrote to the court about its impact on their lives in advance of tomorrow’s sentencing of the confidence man’s brother, Peter, who pleaded guilty in June.

Peter Madoff, 67, who worked for Bernard L. Madoff Investment Securities LLC for four decades, pleaded guilty in June to helping his brother pull off the biggest Ponzi scheme in history. He also denied knowing about the fraud and in court papers said he was also a “victim” of his brother’s scheme.

As part of an agreement with prosecutors, Peter Madoff agreed not to seek less than the maximum 10-year prison term allowed by law and to forfeit his assets up to $143 billion. He asked the court to let him attend the bat mitzvah of his granddaughter before his prison term begins.

Michael DeVita, who said he and his wife, Emma, were victims of the Madoff fraud, has asked to address the court and wrote that Peter Madoff had to know about the fraud as it occurred “right under his nose.”

“It is beyond belief that Madoff alone carried out a crime lasting decades, involving hundreds of feeder fund money raisers, tens of thousands of investors and printing hundreds of thousands of stock confirmations and monthly statements,” DeVita wrote.

Own Account

DeVita wrote that Peter Madoff had admitted depositing just over $32,000 in his own personal BLMIS investment account and withdrawing more than $16 million.

“I ask that you show the same degree of compassion for Peter Madoff that he showed for us -- none!” DeVita wrote in his letter to U.S. District Judge Laura Taylor Swain in Manhattan. “You have an opportunity to give an enhanced degree of justice to Peter’s victims and at the same time send Wall Street a message that the white collar crime of defrauding investors will result in much more than a fine or slap on the wrist.”

Wendy Olsen Clancy, a victim witness coordinator with the Manhattan U.S. Attorney’s office, in a Dec. 17 letter to the judge that was made public today, said DeVita has asked to speak at the sentencing.

Peter Madoff’s guilty plea to two criminal charges came three years to the day after his brother was sentenced to 150 years in prison. During his plea hearing, Peter Madoff told the court he had no knowledge of Bernard Madoff’s scheme until Dec. 9, 2008, the night his brother confessed to him that the investment business was a sham. Bernard Madoff was arrested and confessed to authorities two days later, on Dec. 11.

Peter Madoff pleaded guilty to one count of conspiracy and one count of falsifying records of an investment adviser. Both offenses carry maximum sentences of five years in prison.

The case is U.S. v. Madoff, 10-cr-228, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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