The younger brother of Bernard Madoff will serve ten years in prison for his role in his brother's Ponzi scheme that stole billions of dollars from investors.
Peter Madoff, 67, pleaded guilty in June to criminal charges including conspiracy to commit securities fraud for falsifying the books and records of the investment advisory company founded by his brother.
US District Court Judge Laura Taylor Swain adopted prosecutors' recommendations and sentenced Madoff to ten years in prison.
She also ordered him to forfeit what she called a "draconian" $143.1 billion, which she said would seal his "financial ruination".
"To take his story at face value, he knew that the business operation was a little bit crooked, and he was content to go along with that," Judge Swain said.
"We all know that a crooked operation is rarely if ever just a 'little bit' crooked."
The judge said Madoff's prison term would begin on 6 February and said she would recommend he serve it at a federal prison in Otisville, New York.
His lawyers had asked that he remain free until after his granddaughter's Bat Mitzvah on 19 January. He was also sentenced to one year supervised release following prison.
"I am deeply ashamed of my conduct," Peter Madoff said at the sentencing. "I accept full responsibility for my actions."
Of 13 individuals charged criminally in connection with the fraud, Peter Madoff is the only one, other than his brother, who was a member of the Madoff family.
Bernard Madoff, 74, was sentenced in 2009 to a 150-year prison term and was ordered to forfeit $170.8 billion.
Peter Madoff, a lawyer, had been chief compliance officer and a senior managing director at the firm, Bernard L Madoff Investment Securities.
He said he did not know Bernard was operating the massive Ponzi scheme until shortly before his brother's arrest in December 2008.
However prosecutors said Peter Madoff helped create false and misleading documents designed to make it appear that the firm had an effective compliance programme.
If the firm had such a programme, prosecutors said it would have shown that no real trades were taking place.
Peter Madoff also transferred millions of dollars within the Madoff family to avoid tax payments to the Internal Revenue Service and also put his wife on the firm's payroll in a no-show job.
In December 2008, as Bernard Madoff's firm neared collapse, prosecutors said Peter Madoff also agreed to send $300m remaining in its accounts to certain employees, family members and friends.
Those funds were never dispersed, as the firm instead folded as Bernard Madoff was arrested.
