A Long Island man who worked as a senior trader for Bernard Madoff and later cooperated in the prosecution of ex-colleagues received no prison time at his sentencing Wednesday in Manhattan federal court.
David Kugel, 69, of East Norwich, was given 10 months of home detention, ordered to perform 200 hours of community service and put on probation for two years by U.S. District Judge Laura Taylor Swain, prosecutors said.
Kugel pleaded guilty in 2011 to conspiracy, bank and securities fraud, and falsifying records.More storiesBernard Madoff case: Complete coverage
Prosecutors said he facilitated Madoff's Ponzi scheme by working with others to create fake, backdated trades that were used to fool investment clients into believing actual trading was occurring in their accounts.
After agreeing to cooperate with prosecutors, Kugel testified at the 2013-14 trial of five Madoff aides. Swain, at the recommendation of prosecutors, has so far given no jail time to any of the cooperators she has sentenced.
Like the others, Kugel was contrite.
"The guilt, embarrassment and humiliation have become part of my DNA," he told the judge Wednesday. "In my mind I've gone from being an American success story to being an American tragedy."
Swain also imposed a $170 billion forfeiture judgment on Kugel, which he is theoretically responsible for paying off along with Madoff and others convicted in the fraud.
Madoff is in federal prison in North Carolina serving a 150-year prison term.