U.S. News

Madoff man DiPascali assisted in 3 arrests: lawyers

NEW YORK (Reuters) - Three people charged for roles in the multibillion dollar Bernard Madoff fraud were arrested partly on information provided by the swindler’s longtime right hand man, Frank DiPascali, his lawyer said on Tuesday.

A Viking Sports fish yacht. owned by Bernard Madoff's chief financial officer Frank DiPascali, sits in the dockyard of the National Liquidators in Davie, Florida November 16, 2009. REUTERS/Hans Deryk

DiPascali, who pleaded guilty in August to 10 criminal charges and has been denied bail, asked a Manhattan federal court judge through his lawyer to release him from jail into house arrest. A judge has denied previous requests by his lawyers and U.S. prosecutors for his release until sentencing next year.

“Though most of the information that Mr. DiPascali has provided to the Government remains confidential at this time, some of the fruits of his assistance are public: information he provided contributed to the arrest of three individuals to date,” lawyer Marc Mukasey said in a court memorandum.

A spokeswoman for the U.S. Attorney in Manhattan declined to comment.

The $65 billion Madoff fraud bilked thousands of investors worldwide over two decades, according to prosecutors. DiPascali, 53, had worked for Madoff’s firm since 1975, rising to become chief financial officer.

Five people, including Madoff and DiPascali, have been arrested and criminally charged in the massive swindle. The other three are outside accountant David Friehling and two computer programmers, Jerome O’Hara and George Perez, accused of helping fabricate client account statements.

Madoff, 71, is serving a 150-year prison sentence. Friehling pleaded guilty in November and is free until sentencing. O’Hara and Perez were freed on bail in November.

U.S. District Judge Richard Sullivan denied bail to DiPascali, saying there was too great a risk that he could flee.

Tuesday’s memorandum by his lawyer proposed a $10 million bond co-signed by nine financially responsible people, with DiPascali detained at his home in New Jersey, except for travel under FBI escort to court appearances and meetings with prosecutors.

The case is USA v Frank DiPascali, U.S. District Court for the Southern District of New York, No. 09-764.

Reporting by Grant McCool; Editing by Richard Chang