Bernard Madoff's lawyer says his client will plead guilty to 11 counts, meaning the former Nasdaq chairman could spend the rest of his life behind bars.
The counts include money laundering, perjury and securities, mail and wire fraud. Madoff, 70, is accused of carrying out one of the largest financial frauds in history.
On Tuesday, the judge presiding over the case asked Madoff's lawyer, Ira Sorkin, if his client would plead guilty.
"That's a reasonable expectation," Sorkin replied.
Prosecutor Marc Litt said the U.S. government has not offered Madoff a plea deal on the 11 counts, which carry a combined penalty of up to 150 years in prison.
The comments were made at a hearing to resolve any potential conflicts of interest between Madoff and Sorkin; the lawyer's family invested more than $900,000 with Madoff.
The judge decided Madoff understood his right to "conflict free counsel" and "is waiving that right," so ruled that Sorkin could continue to represent him.
Prosecutors allege Madoff essentially ran an unprecedented Ponzi scheme, which the U.S. Securities and Exchange Commission failed to uncover, that bilked investors out of between $20 billion and $50 billion.
So far, authorities have managed to recover $1 billion.
Frank Razzano, a former SEC lawyer, said that if Madoff pleads guilty, and has not made a plea deal with prosecutors, he would not be obligated to share information about whether anyone else is connected to the case.
"He does not have to provide information with respect to his wife, children and fellow employees," Razzano told CTV Newsnet. "Normally, if you enter into a plea deal with the United States government, you have to agree to provide truthful information to the government and you can't assert your Fifth Amendment rights -- the right to remain silent."
However, Razzano said authorities would continue to investigate the scheme, and look into who may be connected.
"Prosecutors are going to run every single lead into the ground," he said.
Among the alleged victims were numerous charities, including and the Elie Wiesel Foundation for Humanity, which lost about $15 million. The group's mandate is to educate the public about the Holocaust and combat intolerance. A Canadian charity, the Jewish Federation of Greater Toronto, was also reportedly affected.
The British bank HSBC was one of the largest victims, losing about $1 billion. Celebrities like director Steven Spielberg and actor Kevin Bacon also lost money, although the exact amount is unknown.
With files from The Associated Press
