LawFuel.com – 12 August, 2009 – LEV L. DASSIN, the Acting United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Office of the
Federal Bureau of Investigation (“FBI”), ALAN D. LEBOWITZ, the
Deputy Assistant Secretary of the United States Department of
Labor, Employee Benefits Security Administration (“DOL-EBSA”),
and PATRICIA J. HAYNES, the Special Agent-in-Charge of the New
York Field Office of the Internal Revenue Service (“IRS”),
announced today that FRANK DIPASCALI, JR. pleaded guilty to ten
felony counts contained in a Criminal Information. DIPASCALI,
formerly an employee of Bernard L. Madoff Investment Securities
LLC, pleaded guilty in Manhattan federal court before United
States District Judge RICHARD J. SULLIVAN to conspiracy,
securities fraud, investment adviser fraud, falsifying records of
a broker-dealer, falsifying records of an investment adviser,
mail fraud, wire fraud, international money laundering, perjury,
and attempting to evade federal income taxes.
DIPASCALI, 52, of New Jersey, faces a statutory maximum
sentence of 125 years in prison. He is also subject to mandatory
restitution and faces criminal fines up to twice the gross gain
or loss derived from the offense. Additionally, the Criminal
Information to which DIPASCALI pleaded guilty includes forfeiture
allegations that would require DIPASCALI to forfeit the proceeds
of the charged crimes, as well as all property involved in the
money laundering offenses and all property traceable to such
property. The statutory maximum sentences for each of the
charged offenses are set forth in an attached chart.
Judge SULLIVAN remanded DIPASCALI and set a sentencing
control date for May 15, 2010.
Mr. DASSIN praised the investigative work of the FBI,
DOL-EBSA, and the IRS and thanked the SEC for its assistance.
Mr. DASSIN added that the investigation is continuing.
Assistant United States Attorneys MARC LITT, LISA A.
BARONI, WILLIAM J. STELLMACH, BARBARA A. WARD, and SHARON FRASE
are in charge of the prosecution.