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?