Madoff 'funnelled $13bn to friends'

Last updated 16:35 22/06/2010
Bernard Madoff
Reuters
CASH STASH: Bernard Madoff has reportedly said he managed to funnel US$9bn to friend before his arrest.

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Ponzi fraudster Bernard Madoff is reportedly claiming to have funnelled US$9 billion ($13 billion) in stolen funds to friends before he was arrested.

Madoff, 72,  is currently serving a 150-year prison sentence for fleecing clients of US$65 billion through an elaborate pyramid scheme. 

The New York Post reports that Madoff has told fellow prison inmates that before his arrest he managed to shift US$9 billion into accounts belonging to three unidentified friends.

The Post says that Madoff is claiming his former business associate, Frank DiPascali, knows who received the money and has been using that information to cut a better deal with authorities.

DiPascali pleaded guilty last year to 10 felonies connected with Madoff’s fraud and is currently awaiting sentencing. The Post reported that prosecutors had argued DiPascali should be released on bail pending sentencing.

This is not the first time Madoff’s fellow inmates have spoken to US media. Earlier this month New York magazine ran an indepth article based on interviews with unnamed inmates and former inmates who claimed Madoff felt no sympathy towards the victims of his crimes.

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- BusinessDay.co.nz

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