Fallen Wall Street baron Bernard Madoff has confirmed he is set to plead guilty to a massive multi-billion dollar fraud and prosecutors said he should spend the rest of his life in prison.
After months of speculation, Madoff confirmed in court through his lawyer Ira Sorkin that he will plead guilty at a hearing on Friday (AEDT).
Asked if Madoff, 70, would plead guilty to all 11 counts of fraud, Sorkin told the judge: "Yes, your honour."
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Prosecutors charged him with "a scheme to defraud the clients... by soliciting billions of dollars of funds under false pretenses" and said the charges carry a maximum prison sentence of 150 years.
"There is no plea agreement" for a reduced sentence for Madoff, the federal prosecutor told the judge. "He must plead guilty to all 11 counts."
Madoff was arrested in December after allegedly confessing to a $77 billion pyramid scheme, or Ponzi fraud.
Victims' lawyers believe some three million people, including major banks and celebrities, lost money in a decades-long scam where Madoff used investors' funds to pay phony profits, while skimming cuts for himself.
He has been holed up since his arrest under strict $15 million bail in his luxury New York apartment.
The former Nasdaq stock exchange chairman was in court yesterday to clarify a conflict of interest issue with Sorkin.
The issue was that Sorkin's family had invested with Madoff and Sorkin once represented two accountants who brought in fresh investors to Madoff. However, Madoff said he would keep Sorkin as his attorney.
Dressed in a grey suit, white shirt and dark tie, the one-time pillar of Wall Street spoke in a subdued voice.
A guilty plea would mean Madoff gave up his right to a trial.
The 11 counts against him include securities fraud, investment adviser fraud, mail fraud, wire fraud, and three counts of money laundering.
Judge Denny Chin told the court that he would decide after the plea is entered whether Madoff should be taken into custody or be allowed to remain under house arrest until sentencing.
"Sentencing would not take place for several months," Chin said.
In a highly unusual move, victims of Madoff's alleged fraud are to be given the right to speak at Friday's hearing.
Chin asked those given permission to speak to respect the solemnity of the court.
"I understand emotions are high," Chin said, but those appearing must "conduct themselves in a manner appropriate to a court room."
Madoff was a key member of the ultra-wealthy echelons of the US Jewish community and long seen as a money manager with the Midas touch.
His alleged victims range from major banks and Hollywood stars to pension funds, universities and charities.
Those who know him have described his extraordinary charm and ability to deliver consistently high returns on investments — returns that have since emerged to have been based on fraud.
Whether Madoff feels remorse is not yet known.
Sorkin said it was impossible to know how many victims there were because many clients had "received redemptions that exceeded the money they lost".
Sorkin said he did not want "to suggest there were no victims," but that there is "difficulty to identify the real victims."
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