Oops! Another Madoff co-conspirator arrested in Greenwich

Feds showed up at Paul Konigsberg’s home on 19 Pinecroft Road at 6:00 AM this morning and hauled him away.

FBI agents arrested Paul Konigsberg at his Greenwich, Conn., home around 6 am Thursday. Konigsberg, 77, a longtime friend of Madoff, is expected to appear in Manhattan federal court later on Thursday.

“Konigsberg helped recruit new investors to Madoff’s Ponzi scheme,” a law enforcement source said.

The money man was a founding partner of Konigsberg Wolf & Company, a midtown accounting firm no longer in operation.

The five-count indictment that will be unsealed Thursday charges Konigsberg with conspiracy to falsify records of a broker-dealer and an investment adviser, falsifying such records, fraud, and conspiracy to commit fraud.

Konigsberg, the feds say in the indictment, directed the creation of false books and records at Madoff Securities, where a decades-long multi-billion investor ripoff was underway.

“… By December 2008, [Konigsberg’s firm] handled various accounting assignments in connection with more than 300 of Madoff Securities investment advisory accounts,” the indictment alleges.

Konigsberg through his arrangement with Madoff Securities also arranged for a relative to get a $20,000-a-year no show job that included benefits, the indictment alleges. The relative, listed as an unnamed co-conspirator, pocketed $320,000 plus health benefits from 1992 until 2008 when the firm collapsed.

Reed Brodsky, a lawyer for Konigsberg, did not immediately respond to requests for comment.

Well we can do that for you, Mr. Brodsky: “My client is completely innocent, and looks forward to his day in court”. Uh huh. My only question is, how come Walter Noel is still enjoying his pool up there at 175 Rond Hill Road?


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22 responses to “Oops! Another Madoff co-conspirator arrested in Greenwich

  1. housecat

    I thought we had all the fraudsters quarantined to Round Hill. How did this one get loose?

  2. EOSredux

    How does this work? Does Konigberg or his attorney get a heads up that the Feds are coming knocking or does Paul come down in his briefs totally caught off guard? Knock knock, who’s there has a whole new meaning.

  3. housecat

    Actually, speaking of frauds… a tidbit for you, should the mood strike. Some profound thoughts on the subject of sleep are also provided.


  4. Live Free or Die

    she’s a train wreck in slow motion……holy crap!

    • housecat

      Yeah, the comment feed on the Residency Verification post was getting a bit crazy, not to mention confusing – I’m pretty sure I managed to insult the wrong “Anonymous” in one of mine. I thought the latest MM hijinks might provide some relief from the aggro stream.

  5. Greenwich Gal

    One of the few things I actually agree with AJ on – everyone please get a nom de plume and stop the Anon nonsense…

    • anon

      I think Anon is jaunty.

      • housecat

        Okay, but if you’re one of our friendly neighborhood “Anons”, sometimes a heads-up would be nice. I totally sniped at the wrong person today because I *thought* I was responding to someone who called us all a bunch of assholes, bigots, etc. Typing in the time stamp doesn’t always help, apparently.

      • AJ

        Jaunty or not, it confuses the conversation. Why not call yourself Anonhotep: if you don’t put down your email address you can still remain completely anonymous. The unfortunate result of the overabundant use of the pen name anonymous — your mixing of French with English (franglais)would make you sound like a hillbilly in Québec, GG — is that you don’t know whether you’re hearing from someone who had previously posted or someone new to the conversation, and it makes long threads difficult to follow.

        So enough with the noms de plum — I am a hillbilly — and enough with playing Crockett’s Charge (trying to make one voice sound like many) in an attempt to fraudulently give your argument more force. I assume that most of you made it past junior high school, so stop acting like you’re still there.

        Crockett’s Charge begins at 8:00 of the clip.

  6. Inagua

    “… how come Walter Noel is still enjoying his pool up there at 175 Rond Hill Road?”

    Because Walt is a greedy old fraudster without any sense of honor or shame. He has about $300 million of stolen money, which he refuses to return. And the law can’t make him. Others in this position have voluntarily returned the inadvertanty ill-gotten gains, but not Walt. He is a liar and a thief.

  7. Anonymous

    That’s not sam weinberg

  8. Greenwich Gal

    Inagua –
    Why is he not recquired by law to return stolen money? If I went to a store and inadvertantly purchased stolen merchandise – and it is traced – the stolen loot has to be returned to the rightful owner. Right? Just like the Old Masters the Nazis stole from the Jews during WWII.
    The money was “stolen” therefore it has to be returned I would think. I guess I am wrong. Can you explain?