Former Madoff Employee Pleads Guilty

This piece was first published in The Times of Israel.

Former financier Bernard Madoff exits Federal Court in Manhattan, New York on March 10, 2009. (photo credit: AP Photo/David Karp)

Craig Kugel, a former employee of Bernard L. Madoff Investment Securities LLC, pled guilty to tax fraud and making false statements on June 5 in Manhattan federal court. Kugel, 38, now faces a maximum 19 years in prison. He is also subject to mandatory restitution and criminal forfeiture, and to criminal fines. According to an agreement between Kugel and the government, he will forfeit at least $2.3 million.

According to court documents, Kugel, whose duties at Madoff’s company included overseeing employee benefits and human resource record keeping, gave salaries and benefits to individuals who were not actually employed by the company. He created fraudulent records for these individuals, and was responsible for submitting annual return forms to the government, on which he knowingly included a number of fake employees.

Click here to read more.

© 2012 Renee Ghert-Zand. All rights reserved.

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