On Monday, a former employee of Bernard L. Madoff Investment Securities LLC, Eric Lipkin has pleaded guilty for involvement in the Ponzi fraud. The fraud became public in December 2008 with the arrest of Lipkin, who is facing the jail sentence of 70 years.

Lipkin was found guilty of charges of creating false documents and records, which were the basis for the largest Ponzi scheme run by Bernard Madoff. Under Ponzi scheme, early investors are fraudulently paid out returns using the money paid in by later investors.

On Monday, the Securities and Exchange Commission (SEC) revealed that it has charged Lipkin with helping Bernard Madoff, the convict of Ponzi scheme and his firm. The SEC said that Lipkin has played an important role in executing the totally fictitious investment strategy that Madoff and his company claimed to be pursuing on behalf of its clients.

Lipkin pleaded guilty in a hearing in Manhattan federal court for six criminal cases including conspiracy, falsifying records, bank fraud in order to receive a construction loan and other charges. The court has released him on a $2.5 million bond and will be sentenced in December.