Eric Lipkin, former payroll manager for Bernard L Madoff Investment Securities LLC, pleaded guilty to six criminal counts in the U.S. District Court for the Southern District of New York for his role in a Ponzi scheme. The scheme defrauded investors of billions of dollars. Lipkin admitted to falsifying documents to defraud authorities. Judge Laura Taylor Swain said Lipkin could face up to 70 years in prison.
Also on Monday, the US Securities and Exchange Commission (SEC) sued Lipkin in the same federal court for violations of the Securities Act of 1933, Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The SEC wants Lipkin to disgorge his illegally acquired earnings and pay civil penalties.