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Madoff pleads guilty to securities fraud charges

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] US financier Bernard Madoff pleaded guilty Thursday in federal court to all 11 charges of securities fraud. The plea was entered at a hearing before Judge Denny Chin of the US District Court for the Southern District of New York. Victims of Madoff's alleged multi-billion dollar Ponzi scheme are expected to testify at the hearing later Thursday. Chin will then rule on whether Madoff should be allowed to continue to remain free on bail. Thursday's hearing is the first time Madoff has spoken publicly about the allegations facing him. Prosecutors are seeking a 150-year sentence, but a sentence is not expected for several months. Last month, Madoff consented to a partial judgment with the US Securities and Exchange Commission (SEC) over civil charges brought by the SEC to obtain a preliminary injunction and asset freeze against him. The same day, SEC Division of Enforcement Director Linda Thomsen announced she was stepping down from her post. In the week following Madoff's charges, SEC Chairman Christopher Cox said that he would launch an immediate investigation into how the fraud allegedly perpetrated by Madoff went undetected for so long. In December, then-President-elect Barack Obama named Mary Schapiro as the SEC Chairman, replacing Cox. Madoff was charged with securities fraud in December for allegedly violating the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940.11:25 AM - Chin has ordered Madoff to be remanded in custody until his sentencing hearing June 16, effectively revoking his bail. He is expected to be held at Manhattan's Metropolitan Correctional Center.

Full post as published by JURIST - The Paper Chase on March 12, 2009 (boomark / email).