Bloomberg News

Ex-Madoff Employee Eric Lipkin to Plead Guilty, U.S. Says

June 02, 2011

(Updates with details from prosecutor’s letter beginning in second paragraph.)

June 2 (Bloomberg) -- Former Bernard Madoff employee Eric Lipkin will plead guilty to federal criminal charges including falsifying books and records of a broker-dealer and bank fraud.

Lipkin will plead guilty to six separate crimes, Assistant Manhattan U.S. Attorneys Lisa Baroni and Julian Moore said in a letter to U.S. District Judge Laura Taylor Swain, who is presiding over the case. Lipkin is set to plead on June 6, Baroni said.

In addition to two counts of falsifying records and one count of bank fraud, Lipkin will also plead guilty to two counts of conspiracy and one count of making a false statement. He faces as long as 70 years in prison.

“The parties anticipate that, at the conference, Eric Lipkin, a former employee in the investment advisory business of Bernard L. Madoff Investment Securities LLC, will plead guilty to the information pursuant” to an agreement with the government, prosecutors said in the June 1 letter that was made public today.

James Filan, a lawyer for Lipkin, declined to comment.

Five former employees have been charged by Manhattan U.S. Attorney Preet Bharara’s office in the case and are awaiting trial before Swain in connection with the money manager’s multibillion-dollar Ponzi scheme. All have pleaded not guilty.

Annette Bongiorno, who recruited investors and helped run Madoff’s investment advisory office and Joann Crupi, of Westfield, New Jersey, were arrested and charged by the U.S. in November.

The U.S. previously charged Daniel Bonventre, Madoff’s ex- operations chief, and Jerome O’Hara and George Perez, both former programmers who worked at Madoff’s investment business. No trial date has been set.

The case is U.S. v. Eric Lipkin, 10-CR-228 Southern District of New York (Manhattan).

--Editors: Mary Romano, Steve Farr

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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