Go directly to jail

Madoff’s man Frank DiPascali was sent to jail today, where he’ll stay at least until sentencing in May of next year. As part of the plea bargain, the prosecutors had agreed to let the man stay free on bail but as in all such bargains, the judge doesn’t have to go along. In this case, he didn’t. Good.

Attorneys argued the former chief financial officer should be free on bail to help investigators sift through a mountain of evidence. But U.S. District Judge Richard Sullivan surprised both sides by ordering DiPascali jailed immediately — a rarity for a cooperator in a white-collar case who had pleaded guilty.

Sullivan said he felt compelled to keep 52-year-old DiPascali locked up after hearing the defendant admit that, at Madoff’s direction, he lied to the Securities and Exchange Commission in 2006 when he thought they might discover the fraud. The judge said he was troubled too that DiPascali also lied repeatedly “to people who entrusted him with their life savings.”

Defense attorney Marc Mukasey told Sullivan his client was “completely unprepared for this” and tried several times to persuade the judge to change his mind. He described DiPascali as a genuinely repentant cooperator who won the trust of FBI agents by speaking to them nearly every day since late last year.

But in the end, a dejected-looking DiPascali was handcuffed and led out of the courtroom.

5 Comments

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5 responses to “Go directly to jail

  1. Anonymous

    I am probably the 176th person to tell you this but he has been released on 2.5M bond. Sorry.

  2. bob may0

    Life sentence for this one too. Should have just clammed up and took it like a man. Or maybe he is in jail so he does not get whacked on the streets.

    Say hello to the blow job hacks Frankie!

  3. polly pavel

    Good. 9 months of cooperating with the FBI does not absolve 18 years of committing a crime literally every single day. He is guilty, he admitted as much, he belongs in jail today not in 9 months.

  4. christopherfountain

    Bail was the deal but was rejected by the judge. Frank’s cooling his heels in the Manhattan Correctional Center as I write – maybe even in the same cell Bernie sat in for most of the year – wouldn’t that be neat? Judge did allow as to how he’d revisit the issue later, so perhaps he’s just given DiPascali a whiff of grapeshot, as they say, to ensure that he stays cooperative.

  5. mrs p

    Polly, not 18 years. Closer to 28 years. It began in the early ’80s or even earlier.

    Having read the criminal information which describes the complex Madoff operation, I think DiPascali was underpaid for the kind of work he did and the risk he took.