Madoff confidante to plead guilty

Bernard Madoff’s longtime associate Frank DiPascali will plead guilty to fraud charges, court documents indicate.

Filings from U.S. prosecutors made Friday revealed DiPascali, whom analysts expect could become a key witness against Madoff, will enter a guilty plea Tuesday in federal court in Manhattan before U.S. District Judge Richard Sullivan, The Wall Street Journal reported.

The newspaper said it wasn’t clear if DiPascali’s guilty plea is coming with an agreement to testify against Madoff, who is accused of running a massive Ponzi scheme.

Quoting unnamed people familiar with the matter, the Journal said prosecutors are looking at evidence that some of Madoff’s biggest investors were aware the former Wall Street figure’s investment deals were illegal but continued to participate. The cooperation of DiPascali could provide crucial corroborating testimony in future actions taken against them, the newspaper said.

DiPascali served as a customer liason for Madoff, serving as the person they dealt with regarding their investments and also supervising a handful of other employees keeping track of client orders, unnamed people familiar with the company told the Journal.