Frank DiPascali
Frank DiPascali | |
---|---|
St. John's University, Brooklyn College | |
Occupation(s) | Director of options trading chief financial officer |
Employer | Bernard L. Madoff Investment Securities |
Known for | Ponzi scheme, director of options trading and chief financial officer of Bernard L. Madoff Investment Securities (prior) |
Criminal status | Convicted, died before sentencing |
Spouse | JoAnne (married c. 1985) |
Criminal charge | conspiracy, securities fraud, investment advisor fraud, mail fraud, wire fraud, perjury, income tax evasion, international money laundering, falsifying books and records of a broker-dealer, and falsifying books and records of an investment advisor |
Frank DiPascali Jr. (October 28, 1956 – May 7, 2015) was an American fraudster and financier who was a key lieutenant of Bernie Madoff for three decades.[1][2] He referred to himself as the company's "director of options trading" and as "chief financial officer". For a number of years, he played a key part in the daily operation of the Madoff investment scandal, later recounting how he helped manipulate billions of dollars in account statements so clients would believe that they were creating wealth for them.[3]
On August 11, 2009, he pleaded guilty to ten counts related to the fraud.[4][5] He subsequently admitted that he had known for at least two decades that Madoff had turned his investment advisory business into a massive Ponzi scheme. He was denied bail before sentencing and spent ten months in jail before being released. He died of lung cancer in 2015 while awaiting sentencing.
Personal life
DiPascali grew up next door to
DiPascali's brother-in-law, Robert Cardile, bought his former house in Bridgewater for $400,000. Cardile began working for Madoff in 1985, and responded to phone inquiries for DiPascali.
In January 2005, a tax lien of $77,479 by the
Career
DiPascali started at Madoff's investment-advisory business at age 18 in 1975, and eventually oversaw the company's day-to-day operations. He became the director of options in 1986, and CFO in 1996. He also claims to have been a director of Madoff Securities International Limited in London,[7][12] but Companies House (the UK registrar of companies) has no record of him ever being appointed as a director of the company.[13] He was the person many of Madoff's investors dealt with regarding their accounts. Madoff told investors DiPascali executed trades. However, a court-appointed trustee found that no trading had occurred for at least 13 years. Prosecutors have asked at least three employees, Eric Lipkin, JoAnn Crupi, and Robert Cardile, DiPascali's brother-in-law, about his role in the firm.[14] Investors spoke to these other employees and would fax orders if they needed to withdraw money. DiPascali's name was sometimes given as an alternate contact.[15]
DiPascali told investigators that on December 3, 2008, Madoff told him that he was finished.
Criminal and civil complaints and guilty plea
According to an SEC memo, DiPascali "responded evasively" to questioning following Madoff's arrest.[18]
DiPascali pleaded guilty on August 11, 2009 before federal judge
Prosecutors sought bail for DiPascali, but Sullivan remanded him to custody, saying he was a potential flight risk.[24] At a bail hearing on October 28, 2009, Sullivan deferred a decision pending more information, though he added that he still had reason to believe DiPascali might flee to avoid the prospect of dying in prison. One of Madoff's victims, Laurence Leif, objected to bail, claiming it would only serve to further "torment" the victims.[25] In February 2010, Sullivan approved a bail package that required DiPascali to post $10 million bond secured by nine friends and relatives. DiPascali was finally able to post bond on June 22, 2010; he was then released on house arrest and required to wear an ankle monitor.[26]
He was represented by attorney Marc Mukasey, a son of former U.S. Attorney General Michael Mukasey.[27][28] Mukasey said that while DiPascali was indeed guilty, he had long believed that Madoff would be able to repay his clients.[29]
DiPascali's sentencing was delayed for almost six years while he cooperated with prosecutors. With his help, prosecutors were able to reconstruct the details of the massive fraud, recover billions of dollars in assets, and convict 15 others involved in the scandal.[9] Notably, he was the star witness when Bongiorno and four others stood trial for knowingly helping Madoff and profiting from the Ponzi scheme.[30]
In the media
- DiPascali was portrayed by Michael Rispoli in the 2016 ABC miniseries Madoff.
- He was portrayed by Hank Azaria in the May 2017 HBO film The Wizard of Lies, based on the best-selling book by Diana B. Henriques.
See also
- Affinity fraud
- Financial crisis of 2007–2010
- Participants in the Madoff investment scandal
- Recovery of funds from the Madoff investment scandal
References
- ^ Free Birthday Database
- Bloomberg. Retrieved August 10, 2009.
- ^ a b c Healy, Jack (August 11, 2009). "Madoff Aide Says Scheme 'Hurt Thousands of People'". The New York Times. Retrieved August 11, 2009.
- ^ Eposito, Richard; Churchman, Megan; Ross, Brian (11 August 2009). "Bernard Madoff's Right Hand Man Pleads Guilty, Will Tell All". ABC News. Retrieved 11 August 2009.
- ^ "United States v. Frank DiPascali, Jr., 09 Cr. ___ (RJS)" (PDF). ABC News. 11 August 2009. Retrieved 11 August 2009.
- ^ Page 2: Frank DiPascali Pleads Guilty, Bernard Madoff's Accomplice - ABC News
- ^ Bloomberg. January 16, 2009.
- The New York Post.
- ^ a b Behar, Richard (May 10, 2015). "Frank DiPascali Is Dead, Four Months Before His Sentencing; Bernie Madoff's 'Sammy the Bull' Was 58". Forbes.
- ^ Yang, Stephanie (May 11, 2015). "Former Madoff Aide Frank DiPascali Dies at Age 58 of Lung Cancer". The Wall Street Journal.
- Bloomberg. Retrieved August 11, 2009.
- ^ a b Bray, Chad; Lauricella, Tom (August 12, 2009). "'All Fake': Key Madoff Executive Admits Guilt". The Wall Street Journal.
- ^ "MADOFF SECURITIES INTERNATIONAL LIMITED - Officers (Free information from Companies House)".
- ^ Efrati, Amir (March 9, 2009). "Madoff Aide Allegedly Got Fake 'Tickets' of Trading". The Wall Street Journal.
- ^ Lucchetti, Aaron; Efrati, Amir; Lauricella, Tom (January 21, 2009). "Madoff's Point Man Is Cast in Same Role for Prosecutors". The Wall Street Journal. Retrieved March 25, 2009.
- ^ ISBN 978-0805091342.
- ^ ISBN 978-1401310295.
- ^ Efrati, Amir; Aaron Lucchetti; Tom Lauricella (December 23, 2008). "Probe Eyes Audit Files, Role of Aide To Madoff". The Wall Street Journal. Retrieved December 23, 2008.
- ^ "United States v. Frank DiPascali, Jr., 09 Cr" (PDF). ABC News.
- ^ "DiPascali Faces Conspiracy, Fraud, Tax Charges". Bloomberg. August 11, 2009.
- Bloomberg.
- ^ Esposito, Richard; Chuchmach, Megan; Ross, Brian (August 11, 2009). "Frank DiPascali Pleads Guilty, Bernard Madoff's Accomplice". ABC News.
- ^ "SEC CHARGES KEY MADOFF LIEUTENANT FOR OPERATING AND CONCEALING FRAUD THROUGH BOGUS TRADES AND DOCUMENTS" (PDF). The Wall Street Journal (Press release). August 11, 2009.
- ^ Henriques, Diana B. (October 17, 2009). "Prosecutors Again Seek Bail for Man Who Helped Madoff". The New York Times. Retrieved May 2, 2010.
- ^ McCoy, Kevin (October 29, 2009). "Judge delays decision on bail for Madoff aide DiPascali". USA Today. Retrieved May 2, 2010.
- ^ "Madoff's Key Lieutenant Frank DiPascali Free on Bail". CNBC. June 6, 2010.
- ^ Emmert, Don (December 17, 2008). "Madoff put under curfew as he seeks people to vouch for him". USA Today. Retrieved April 21, 2009.
- Bloomberg. Retrieved June 16, 2009.
- ^ "'It Was All Fake': Madoff Aide Details Scheme". The New York Times. August 12, 2009. Retrieved May 2, 2010.
- ^ McCoy, Kevin (December 3, 2013). "Ex-Madoff lieutenant tells of his rise and fall". USA Today.
External links
- Frank DiPascali DOJ Information/Plea Agreement (August, 2009)