June 17 (Bloomberg) -- Bernard Madoff’s former accountant, Paul Konigsberg, will plead guilty next week to aiding in the con man’s multibillion-dollar Ponzi scheme, the government said.
Jim Margolin, a spokesman for Manhattan U.S. Attorney Preet Bharara said Konigsberg will enter the plea before U.S. District Judge Laura Taylor Swain on June 24.
Konigsberg was part of the conspiracy from 1992 until Madoff’s Ponzi scheme fell apart with his December 2008 confession and arrest, according to prosecutors. Konigsberg fabricated records to cover up fraudulent transactions by Madoff, prosecutors claimed in a five-count indictment that was made public in September.
Madoff is serving 150-year sentence for his crimes. His fraud cost investors more than $17 billion in lost principal, according to the government. Konigsberg, who was allowed to remain free on $2 million bail, claimed he was a victim.
The charges against Konigsberg include conspiracy, falsifying records of a broker-dealer, fabricating records of an investment adviser and falsifying statements to the U.S. about employee-benefit plans.
“We are finalizing the terms of the plea,” Assistant U.S. Attorney Matthew Schwartz told Swain today. “Mr. Konigsberg will enter a plea of guilty, pursuant to the cooperation agreement.”
Five former Madoff employees, Daniel Bonventre, Jerome O’Hara, George Perez, Joann Crupi and Annette Bongiorno, were found guilty in March of aiding the fraud. They’re awaiting sentencing.
The case is U.S. v. Konigsberg, 10-cr-00228, U.S. District Court, Southern District of New York (Manhattan).
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