Long-time Madoff employee to plead guilty: prosecutors

NEW YORK, Wed Sep 12, 2012 – One of Bernard Madoff’s longest-serving employees is expected to plead guilty to criminal charges in the multibillion-dollar Ponzi scheme, U.S. prosecutors said, the latest among a dozen former employees to face charges.

Irwin Lipkin, a former controller of Bernard L. Madoff Investment Securities LLC, will appear in Manhattan federal court on Thursday, prosecutors said in a letter to the judge.

He will plead guilty to charges of conspiracy to commit securities fraud and falsifying documents, prosecutors told U.S. District Judge Laura Taylor Swain in the letter, which was dated Tuesday, Sept. 11.

The letter said Lipkin, 74, created “false financial records t hat were provided to BLMIS investors,” false filings with the U.S. Securities and Exchange Commission and false statements required under a federal law that sets standards for pension plans.

Lipkin’s lawyer, David Richman, was not immediately available to comment. The charges carry a maximum possible prison term of 10 years.

Lipkin’s son, Eric Lipkin, another former Madoff employee, pleaded guilty in 2011 to criminal charges of bank fraud and charges that he reported people were Madoff employees so they could receive retirement benefits.

Irwin Lipkin joined Madoff’s firm in 1964, according to court records. Court papers showed that he continued to draw a salary from the firm even after he stopped working there in 1999.

Madoff, 74, was charged in December 2008 with a decades-long fraud that the government originally estimated at as much as $64.5 billion. He pleaded guilty in March 2009 and is serving a 150-year prison sentence.

The trustee leading the search for money to return to Madoff’s victims says Madoff defrauded customers of about $20 billion. The trustee, Irving Picard, so far has won $9.1 billion in recoveries and settlement agreements.

GlaxoSmithKline settles healthcare fraud case for $3 billion

WASHINGTON, Mon Jul 2, 2012 – GlaxoSmithKline Plc has agreed to plead guilty to misdemeanor criminal charges and pay $3 billion to settle the largest case of healthcare fraud in U.S. history.

The settlement includes $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the drug company’s Paxil, Wellbutrin and Avandia products, according to filings in federal court on Monday.

Deputy U.S. Attorney General James Cole said at a news conference in Washington that the settlement “is unprecedented in both size and scope.”

As part of the settlement, GlaxoSmithKline agreed to strict oversight of its sales force by the U.S. government to prevent the use of kickbacks or other prohibited practices.

GSK said in a statement it would pay the fines through existing cash resources. The company announced a $3 billion charge in November related to legal claims.

CEO Andrew Witty said GSK’s U.S. unit has “fundamentally changed our procedures for compliance, marketing and selling. When necessary, we have removed employees who have engaged in misconduct.”

Bernard Madoff’s brother to plead guilty, U.S. says

NEW YORK, Thu Jun 28, 2012 – Peter Madoff, the brother of imprisoned swindler Bernard Madoff, is expected to plead guilty to criminal charges on Friday, the first family member to do so since the Ponzi schemer’s fraud was uncovered in December 2008.

In a letter filed Wednesday in Manhattan federal court, U.S. Attorney Preet Bharara said Peter Madoff is expected to plead guilty to charges of conspiracy to commit securities fraud and other crimes, as well as falsifying records. He agreed not to seek a sentence other than 10 years in prison.

Madoff, who had been chief compliance officer at Bernard L. Madoff Investment Securities LLC, also agreed to a criminal forfeiture of about $143.1 billion, including all real and personal property, the letter said. The amount is symbolic, being more than twice the estimated size of the fraud.

John Wing, a lawyer for Madoff, did not immediately respond to a request for comment.

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 be identified immediately.

Mark Madoff, another of Bernard Madoff’s sons, committed suicide in December 2010.

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 a 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.

Former Goldman board member Rajat Gupta guilty of insider trading

NEW YORK, Fri Jun 15, 2012 – Former Goldman Sachs Group Inc. board member Rajat Gupta was convicted on Friday of illegally tipping his hedge-fund manager friend Raj Rajaratnam with secrets about the investment bank, a major victory for prosecutors seeking to root out insider trading on Wall Street.

A Manhattan federal court jury found Gupta guilty of three counts of securities fraud and one count of conspiracy, ending the four-week trial. He was found not guilty on two other securities fraud charges.

The jury delivered the verdict on the second day of its deliberations. U.S. District Judge Jed Rakoff has set sentencing for Oct. 18.

The verdict marks a stunning fall for Gupta, who is also a former top executive at business consulting firm McKinsey & Co and a former director of Procter & Gamble.

Gupta’s one-time associate Rajaratnam, who was convicted of 14 counts of insider trading at a trial last year, is now serving an 11-year prison term.