Ex-Madoff Employee to Plead Guilty, Cooperate

Eric S. Lipkin, a former employee of convicted Ponzi schemer Bernard L. Madoff, is expected to plead guilty on Monday to criminal charges that he was involved in the massive scam, according to U.S. prosecutors.

Lipkin, who worked in the investment advisory business alongside Madoff, will enter his plea as part of a cooperation agreement with prosecutors, and on all six counts including bank fraud, making false statements, two counts of falsifying books and records, and two counts of conspiracy, U.S. prosecutors said.

The bank fraud charge carries up to 30 years in prison, and 20 years for falsifying records of broker deals.

Including Madoff, Lipkin is the fourth person to plead guilty in the Ponzi Scheme.

Five former Madoff employees: Annette Bongiorno, JoAnn Crupi, Daniel Bonventre, Jerome O'Hara and George Perez have pleaded not guilty to charges and await trial.

In November 2010, Madoff Trustee Irving Picard filed an action against Eric Lipkin and members of his family claiming they should have known that the Madoff enterprise was a Ponzi and is seeking $9 million dollars in compensation from them.

According to the Picard complaint, Eric, who was employed starting in 1992, "assisted Frank Dipascali creating fictitious trades for customer accounts and the falsification of records provided to regulators including the SEC."

In the same Picard document, Eric's father Irwin, who was hired in 1964 as the first Madoff employee, is quoted as describing Madoff as "the brother I never had."

Madoff, a former chairman of the Nasdaq exchange, is currently serving a 150-year sentence in federal prison in North Carolina. His $50 billion Ponzi scheme was the largest in U.S. history.

Jim Forkin contributed to this report