First Madoff employee to be charged: Frank DiPascali, CFO

So far in the Madoff scandal only one person other than Madoff has been charged. His accountant, David Friehling, was accused of securities fraud and investment-adviser fraud and four counts of making false filings with the Securities and Exchange Commission on July 17. Friehling pleaded not guilty.

Now cases against Madoff employees appear to be moving forward. Frank DiPascali, who was chief financial officer for Bernard L. Madoff Investment Securities, will likely be charged in the next few days. Government prosecutors filed a notice of intent, but did not specify the charges. The notice, which was signed two days ago indicated that DiPascali will waive his right to an indictment. That likely means that DiPascali agrees to admit guilt and cooperate with authorities in exchange for leniency. This is the same type of document prosecutors filed before Madoff pleaded guilty.