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Madoff’s Ex-Controller Expected to Plead Guilty

December 16, 2011
Enrica Cotellessa-Pitz, the former controller of Bernard L. Madoff Investment Securities, will admit on Monday to falsifying the company’s records and making phony submissions to government regulators, according to a letter  filed by federal prosecutors . She has not been charged yet but is cooperating with the government, the letter said. The case against Ms. Cotellessa-Pitz follows a civil lawsuit filed against her and her husband last year by Irving Picard the trustee seeking to recover money for Madoff victims. Mr. Picard accused Ms. Cotellessa-Pitz, who began working for Mr. Madoff in 1978, of playing a “key role” in disguising the fraud from investors and the authorities.  As controller, Ms. Cotellessa-Pitz was responsible for closing the company’s books each month, the civil lawsuit said. It accused her of moving hundreds of millions of dollars from Mr. Madoff’s fraudulent investment scheme to the firm’s legitimate trading operations.She was paid about $3.3 million by Madoff, and she and her husband, who live in Ozone Park in Queens, withdrew nearly $500,000 in proceeds from phony investment accounts, according to the civil lawsuit. Ms. Cotellessa-Pitz would be the 11th person criminally charged in the Madoff case. After her hearing on Monday, six, including Mr. Madoff, will have admitted participating in the fraudulent scheme. Five people charged in the case have denied any wrongdoing. Timothy J. Treanor, a lawyer for Ms. Cotellessa-Pitz at the law firm Sidley Austin, did not immediately respond to Dealbook's request for comment.  [Dealbook 12/15//11]