June 27, 2012 at 6:00 PM ET
Peter Madoff, the brother of Bernard Madoff and former chief compliance officer of the imprisoned swindler's firm, is expected to plead guilty to criminal charges of conspiracy and falsifying records, U.S. prosecutors said on Wednesday.
In a letter filed in Manhattan federal court, U.S. Attorney Preet Bharara said Madoff is expected to enter his plea on Friday and agreed not to seek a sentence other than 10 years in prison.
Madoff also agreed to a criminal forfeiture of about $143.1 billion, including all real and personal property, the letter said.
John Wing, a lawyer for Madoff, did not immediately respond to a request for comment.
Peter Madoff would become the first member of Bernard Madoff's family to admit to criminal charges in connection with wrongdoing at the former Bernard L. Madoff Investment Securities LLC, a case prosecutors unveiled in December 2008.
Prosecutors have not said whether criminal cases are also being prepared against Bernard Madoff's son Andrew, who was co-director of trading, or his niece Shana, who was a compliance officer at the firm.
Both are being sued by Irving Picard, the trustee seeking money for the Ponzi scheme's victims. He has filed a $255 million lawsuit against them and other Madoff family members.
Martin Flumenbaum, a lawyer for Andrew Madoff, did not immediately respond to a request for comment. A lawyer for Shana Madoff could not immediately be identified.
Peter Madoff is charged with one count of conspiracy to commit securities fraud and mail fraud as well as making false statements about the firm's compliance program and investment advisory business.
A second charge accuses him of falsifying records of an investment adviser.
About one dozen people have now been implicated in criminal wrongdoing related to Bernard Madoff's former firm.
Five have pleaded not guilty: Annette Bongiorno, Daniel Bonventre, Joann Crupi, Jerome O'Hara and George Perez.
Frank DiPascali, the firm's former chief financial officer and often called Bernard Madoff's right-hand man, pleaded guilty in August 2009 and has been praised by prosecutors for his subsequent cooperation.
DiPascali has yet to be sentenced. His lawyer Marc Mukasey declined comment.
Picard has estimated that customers of the Madoff firm lost about $20 billion. On Monday, the U.S. Supreme Court let stand a lower court ruling on the trustee's methods for calculating losses. That decision could help Picard repay customers faster.
A spokeswoman for Picard did not immediately respond to a request for comment.
Bernard Madoff, 74, is serving a 150-year prison sentence after pleading guilty in March 2009. He was ordered to forfeit $170.8 billion, more than twice the size of his estimated fraud.