[ by Howard Haykin ]

One of Bernie Madoff's longest-serving employees - a former Controller - reportedly will plead guilty to criminal charges in the multibillion-dollar Ponzi scheme.  Irwin Lipkin is scheduled to appear in Manhattan federal court on Thursday, according to a letter that prosecutors sent to U.S. District Judge Laura Taylor Swain on 9/11/12.

Previously,  Lipkin's son, Eric Lipkin, another ex-Madoff employee, pleaded guilty in 2011 to criminal charges of bank fraud and charges that he reported people were Madoff employees so they could receive retirement benefits.

According to the prosecutors' letter to the Judge:

• Irwin Lipkin will plead guilty to charges of conspiracy to commit securities fraud and falsifying documents.
• Lipkin, 74, created "false financial records t hat were provided to BLMIS investors," false filings with the SEC and false statements required under a federal law that sets standards for pension plans.
• Lipkin's lawyer, David Richman, was not immediately available to comment.
• Lipkin faces a maximum of 10 years in prison.
• Irwin Lipkin joined Madoff's firm in 1964 and stopped working in 1999.
• He continued to draw a salary after 1999, according to court records.

Of the dozen people charged in the case, apart from Bernie Madoff, 5have pleaded not guilty and are awaiting trial.

The case is: U.S. v. O'Hara et al, U.S. District Court, Southern District of New York, No. 10-cr-00228.    [Reuters, 9/12/12]