New York - An "ashamed" Bernard L. Madoff pleaded guilty Thursday morning to bilking investors out of billions of dollars in savings in the biggest fraud in Wall Street history, and a judge ordered him jailed immediately to await a June 16 sentencing date.

Bernard Madoff arrived outside New York Federal Court on Thursday, where he pleaded guilty to 11 counts of fraud. He is expected to face a prison sentence of up to 150 years. (Photo: AFP / Getty Images)

    The 70-year-old disgraced financier, who had been confined to his Upper East Side penthouse under a $10 million bail agreement since his Dec. 11 arrest, admitted running an extensive Ponzi scheme that wiped out charitable endowments and cost thousands of people their life savings.

    The 11 felony charges carry a maximum sentence of 150 years in prison. The actual sentence is likely to be much shorter, but given Madoff's age would likely still amount to a life sentence.

    Madoff pleaded guilty to securities fraud, investment advisory fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings to the Securities and Exchange Commission and theft from an employee benefit plan.

    "I am actually grateful for this opportunity to publicly comment about my crimes, for which I am deeply sorry and ashamed," Madoff told U.S. District Judge Denny Chin in a steady voice. He said he believed initially that the scheme would not last long and that he could extricate himself from it but realized as the years went by that he was in a risky situation and would eventually be caught.

    "I cannot adequately express how sorry I am for my crimes," Madoff told the court.

    After Chin denied Madoff bail and ordered his immediate incarceration, victims of the scam who attended the hearing erupted in applause.

    Madoff made the plea without an agreement with the government regarding his sentencing, federal prosecutors said at a hearing Tuesday. In court papers made public Tuesday, the prosecutors said Madoff operated a $64 billion fraud by soliciting from pension funds, charities and other investors.

    He set up accounts in London, in part to make it look like he was investing in European securities. To give his business an air of legitimacy, the documents said, Madoff hired numerous employees with little or no relevant training and had them generate false documents, including trading records and monthly statements to clients. Prosecutors didn't say whether Madoff's staff was aware of the fraud.

    Among those who described themselves as victims of Madoff were Richard and Cynthia Friedman, who joined a crowd outside the courthouse to await news of Madoff's plea. Richard Friedman, 59, said he started investing proceeds from his accounting business in 1991 and money from clients in 1995.

    "We've lost our whole life savings, $3 million, with Bernard Madoff," said Cynthia Friedman. "My husband now has to build his business back up. He was just about to retire."

    Informed of Madoff's guilty plea, she said, "I hope he rots in hell where he belongs. . . . I don't want him to go back to his penthouse. He's evil. . . . He stole from charities; he stole from pensioners."

    Said Richard Friedman, "I would rather there had been a trial so that all the dirt would come out." He said he was angry not only at Madoff but at the U.S. government and the Securities and Exchange Commission, which he said was "grossly negligent" for not properly investigating Madoff. He said later that he and other bilked investors were also having problems with the Internal Revenue Service, because they had paid taxes over the years on earnings that turned out not to exist.

    At least two dozen victims have asked to speak at Thursday's hearing, before Chin. The judge has said their comments must be limited to the two issues that will be before the court: whether to accept Madoff's guilty plea and whether he should be remanded until sentencing.

    More extensive remarks by victims -- about the impact of the Ponzi scheme on their lives and savings -- could come at the sentencing hearing.

    Hundreds of news crews were waiting for Madoff when he arrived at the federal courthouse in Lower Manhattan Thursday morning for the 10 a.m. hearing.

    Crowds also gathered outside his posh apartment building well before daybreak to await his appearance. Cable and network morning news shows aired live coverage of the disgraced financier's chauffeured car driving to the downtown courthouse.

    With cameras flashing in his face, an expressionless Madoff walked briskly into the federal building.

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    Wire services contributed to this report.

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