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What Frank DiPascali Jr. didn't count on was U.S. District Court Judge Richard Sullivan. Reading from a prepared statement, DiPascalli told Sullivan: "I'm standing here today to tell you that from the early 1990s to 2008, I helped Bernie Madoff and other people carry out a fraud." DiPascali, who worked for Madoff for 33 years, also relayed how he and Madoff faked stock trades, sent out fictitious account statements and even created a computer system to make it all seem real. According to The New York Times, to keep the "scheme afloat and investors and regulators duped was a full-time job." Madoff's former CFO also said he would "dedicate myself to explaining what happened." But the judge wasn't impressed with his mea culpa, and surprised everyone by refusing DiPascalli bail and dispatching him to jail immediately pending sentencing. Sullivan said he was not persuaded that the bail terms, a $2.5 million bond agreement reached between the prosecution and defense lawyers, would ensure that DiPascali, would show up for sentencing. Meanwhile, the Securities and Exchange Commission filed a civil complaint against DiPascali on Tuesday that details how far Madoff, DiPascali and others allegedly went to avoid detection and how it ultimately collapsed. It details how DiPascali and Madoff, with others, contrived to convince regulators, investors and even visitors to their office that trading was happening, when it wasn't. He admitted lying to the SEC at the behest of Madoff in 2006 and said he knew what he was doing "was wrong." DiPascali pleaded guilty to 10 felony charges including tax evasion and conspiracy. He faces up to 125 years in prison. Sentencing is on hold until May 2010 when his cooperation, with lawyers and prosecutors will be updated. Last month, David Friehling, Madoff's outside auditor, waived indictment and pleaded not guilty to securities fraud and other criminal charges. And the mastermind, Madoff is serving 150 years at Butner Federal Correctional Institution, Butner, N.C., for his role. - Donna Block See story from The New York Times
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Go directly to jail, do not pass go. If Bernard Madoff's right-hand man thought he would be allowed to remain free on bail because he has been cooperating with the FBI on the nitty gritty of how the $65 billion Ponzi scheme was carried out, he was wrong. 
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