Criminal Justice

Lawyer who did accounting work for Madoff clients is accused of fabricating records

An accountant who is also a lawyer has been arrested in connection with the Ponzi scheme that put Bernard Madoff behind bars.

Paul Konigsberg, 77, was arrested early this morning, report the Wall Street Journal Law Blog, the Associated Press, the New York Times DealBook blog and Bloomberg News. He handled tax work for Madoff foundations and Madoff clients, and is a lawyer with a master’s in taxation from New York University School of Law, DealBook says.

An indictment unsealed today says Madoff directed his most important clients to Konigsberg, who helped cover up fraudulent transactions by fabricating books and trading records, Bloomberg reports.

Konigsberg’s lawyer, Reed Brodsky, told Bloomberg and the Times that his client “is a victim of Bernie Madoff” and he “looks forward to clearing his good name.”

The arrest comes as five Madoff employees prepare for a trial scheduled to begin on Oct. 7. They are accused of aiding Madoff’s fraud.

We welcome your comments, but please adhere to our comment policy and the ABA Code of Conduct.

Commenting is not available in this channel entry.