Feds Draw Bullseye On Madoff Lieutenant DiPascali


It seems inconceivable that Bernie Madoff acted alone, and the Feds continue to focus on a man who appears to be a promising possible confederate: Frank DiPascali.

WSJ: Frank DiPascali…dealt with client accounts and worked at the firm for 22 years, according to brokerage industry records.

“If you wanted anything, a new account, money in, money out, you called Frank,” said one Madoff investor. “Nothing moved in that office without him, operationally,” this person said.

That sounds promising. And then there’s this from his attorney:

“Frank DiPascali would like to see investors get back whatever they can,” said Marc Mukasey, a lawyer for Mr. DiPascali. He declined to comment further.

Not exactly a denial. Now add this:

After Mr. Madoff’s arrest on Dec. 11, investigators from the Securities and Exchange Commission showed up at the Madoff firm’s headquarters in Manhattan and questioned Mr. DiPascali. He “responded evasively” and his answers were “incomprehensible,” according to an SEC memorandum reviewed by The Wall Street Journal and a person familiar with the matter. He told the SEC he didn’t know who was responsible for the parts of the investment-advisory firm that cleared and settled trades, the SEC memo said.

So could two people have pulled this off? Still seems unlikely. Which is why the Feds have also subpoenaed David Friehling, the mystery accountant.

We tried to find a DiPascali picture, but have so far stuck out. Did stumble upon this TalkingPointsMemo speculation about a DiPascali-Madoff-mob connection here.