NEW YORK (CBS) -- In a New York federal court Peter Madoff, the brother of Bernie Madoff, pleaded guilty today to conspiracy and fraud. But he still insists he did know about the notorious Ponzi scheme.
Peter Madoff walked out of federal court free on $5 million bail, but when he is sentenced in October he will likely go to prison for ten years. And he'll be forced to surrender all his assets.
The 66-year-old younger brother of Bernie Madoff waived his right to a trial and pleaded guilty to conspiracy and multiple counts of fraud.
In a soft voice he told the court, "I am deeply ashamed and sorry for what i did."
Peter worked side by side with Bernie for nearly 40 years. He was the chief compliance officer during the decades his brother was running a massive Ponzi scheme that ripped off high profile clients for more than $20 billion. Peter Madoff was in charge of overseeing the company's operations. He admitted in court that he falsified documents and lied to regulators which allowed the fraud to continue.
He also admits hiding from the government tens of millions in cash gifts he received from Bernie and the firm.
But in court, Peter Madoff told the judge he never knew about the fraud that cheated investors until his brother told him in December 2008.
Madoff said when he learned of the scheme "I was in shock and my world was destroyed. My family was torn apart." He said, "I revered and trusted my brother implicitly."
Once he knew about the scheme, he admits he still stuck by his brother agreeing to dole out whatever money was left in the firm to family and friends.
Bernie Madoff is serving a 150 year prison term.