As the chief compliance officer of BLMIS, Peter Madoff worked in tandem with his brother for over four decades with 20 years of managing the firm's daily operations. As perhaps one of the closest to Madoff within his inner circle, Peter was certainly one of the early investors on the receiving end of large pay outs from the scheme. Following his brother's arrest in December of 2008, Peter stepped down from the board of directors with the Securities Industry and Financial Markets Association. In 2012, he plead guilty to various charges linked to the Ponzi scheme including hiding millions from the IRS to avoid taxes. While Peter agreed to pay over $90 million not in his current possession, this was waved by Irving Picard on the ground that Peter would continue to make a concerted effort in helping Picard recover the funds lost and/or fabricated by the BLMIS scheme. In December of 2012, he was sentenced to 10 years in prison.
