Madoff's CFO Frank DiPascali pleads guilty in Ponzi scheme

NEW YORK -- Ponzi scheme architect Bernard Madoff's former top financial aide, Frank DiPascali, pleaded guilty to conspiracy, securities fraud and eight other charges Tuesday as part of a cooperation deal in which he's expected to help prosecutors target other suspects in the massive scam.

DiPascali, 52, who rose from a teenage assistant to Madoff to become the chief financial officer of the now disgraced financier's business, waived indictment by a federal grand jury and admitted he spent decades helping the former money manager falsify purported trading records for thousands of victimized investors.

READ: Criminal information against DiPascali | The charges against DiPascali

FROM THE SEC:Complaint | Press release

The admission, which came as DiPascali pleaded guilty to all 10 criminal counts in a packed courtroom hearing before U.S. District Judge Richard Sullivan, was the first public confirmation that one of the largest financial crimes in history was a conspiracy that involved multiple players.

Surprising prosecution and defense lawyers, Sullivan ordered DiPascali, formerly the main Madoff business contact for many investors, jailed at least temporarily after rejecting a bail package recommended by both sides. The stunned defendant was taken from the courtroom in handcuffs.

DiPascali's admissions came as the Securities and Exchange Commission filed a parallel civil lawsuit that accused the Bridgewater, N.J., resident of helping Madoff cover up the decades-long fraud.

Dressed in a gray suit, and occasionally choking back tears, DiPascali told Sullivan he helped Madoff prepare "fictitious" records of stock trades that purportedly documented decades of eerily steady investment gains for thousands of celebrities, charities, financial funds and average investors who lost at least $13 billion in the scam.