Frank DiPascali facts for kids
Quick facts for kids
Frank DiPascali
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DiPascali in a 2009 Department of Justice photograph
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Frank DiPascali Jr.
October 28, 1956 Queens, New York, U.S.
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| Died | May 7, 2015 (aged 58) |
| Education | courses at St. John's University, Brooklyn College |
| Occupation | Director of options trading chief financial officer |
| Employer | Bernard L. Madoff Investment Securities |
| Known for | Ponzi scheme, director of options trading and chief financial officer of Bernard L. Madoff Investment Securities (prior) |
| Criminal status | Convicted, died before sentencing |
| Spouse(s) | JoAnne (married c. 1985) |
| Criminal charge | conspiracy, securities fraud, investment advisor fraud, mail fraud, wire fraud, perjury, income tax evasion, international money laundering, falsifying books and records of a broker-dealer, and falsifying books and records of an investment advisor |
Frank DiPascali Jr. (born October 28, 1956 – died May 7, 2015) was an American who worked closely with Bernie Madoff for about 30 years. He was known as the company's "director of options trading" and "chief financial officer."
Frank DiPascali played a big part in the daily operations of the Madoff investment scandal. He later explained how he helped to fake billions of dollars in account statements. This made clients believe their money was growing. In 2009, he admitted to his role in the scam. He said he had known for at least 20 years that Madoff's business was a huge Ponzi scheme. A Ponzi scheme is a type of scam where money from new investors is used to pay earlier investors. This makes it seem like the business is successful. DiPascali died in 2015 from lung cancer before he could be sentenced.
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Frank DiPascali's Early Life and Family
Frank DiPascali grew up in the Howard Beach area of Queens, New York. His neighbor, Annette Bongiorno, who was Madoff's assistant, helped him get a job with Madoff.
DiPascali finished high school at Archbishop Molloy High School in 1974. He started working for Madoff's company in 1975. He also took classes at St. John's University and Brooklyn College.
Frank and his wife, JoAnne, lived in a large house in Bridgewater Township, New Jersey. They owned three black Mercedes cars. They also had a large yacht. DiPascali had some issues with unpaid taxes in the past, but these were later paid.
Working with Bernie Madoff
DiPascali began working for Madoff's investment business when he was 18 years old. This was in 1975. He eventually managed the company's daily activities. He became the director of options in 1986. Later, he became the chief financial officer (CFO) in 1996.
Many of Madoff's investors talked to DiPascali about their accounts. Madoff told investors that DiPascali was the one who made the trades. However, an investigation later found that no actual trading had happened for at least 13 years.
How the Scam Was Discovered
DiPascali told investigators that in December 2008, Madoff said he was "finished." At that time, many investors wanted their money back. This was because of a big financial problem happening in the world. Madoff's bank account had very little money left. It was not enough to pay back everyone who wanted their money.
Madoff told DiPascali to use the remaining money to pay back his relatives and favorite investors. When Madoff's sons found out about these payments, they told their lawyers. Their lawyers then told them to contact federal prosecutors. This led to Madoff's arrest on December 11.
Frank DiPascali in Movies and TV
Frank DiPascali's story has been shown in several productions:
- In 2016, Michael Rispoli played DiPascali in the ABC miniseries Madoff.
- In 2017, Hank Azaria played him in the HBO movie The Wizard of Lies. This movie was based on a popular book by Diana B. Henriques.
See also
- Affinity fraud
- Financial crisis of 2007–2010
- Participants in the Madoff investment scandal
- Recovery of funds from the Madoff investment scandal
