Madoff's Brother Agrees to Give Up $143 Billion He Doesn't Have - TheStreet

NEW YORK (

TheStreet

) -- The brother of the Bernard Madoff has plead guilty to two counts of fraud related to a $50 billion Ponzi scheme and has agreed to forfeit $143.1 billion in his property, as part of a settlement with prosecutors that will put him behind bars for at least a decade.

Prosecutors said in court papers signed by a federal judge that Peter Madoff, the former chief compliance officer of Bernard L. Madoff Investment Securities, will forfeit $143.1 billion and serve a 10 year prison sentence for his connection to the swindle.

Peter Madoff

Peter Madoff will plead guilty to conspiracy to commit securities fraud and falsifying records, among other criminal charges. After a 2009 conviction, his brother Bernard Madoff is currently serving a 150 year prison sentence in Butner, N.C.

According to court papers filed to federal judge Laura Taylor Swain, as COO Peter Madoff falsified statements to investors about Bernard Madoff Investment Securities' compliance policies and activities. His role in the Ponzi scheme also included misleading the

Securities and Exchange Commission

with false records, the papers say. Overall, the charges are added proof that Bernard Madoff did not act alone, a claim he made when the Ponzi scheme was uncovered in late 2008.

The court papers say, "pursuant to a plea agreement with the government, Peter Madoff agrees not to seek a sentence of other than 10 years' Imprisonment... Further, Peter Madoff agrees to the criminal forfeiture of approximately $143.1 billion, including all of his real and personal property."

That number represents a judgment against Peter Madoff and not his current assets; however whatever real and personal property he has may help in the recovery of losses from the Ponzi scheme, which spanned decades. To date, Madoff investors are sitting on roughly $20 billion in losses.

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Written by Antoine Gara in New York

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