Marcello Trebitsch, the son-in-law of former New York State Assembly Speaker Sheldon Silver has just pled guilty to running a multi-year Ponzi scheme:

A son-in-law of former New York state Assembly Speaker Sheldon Silver pleaded guilty to securities fraud Monday, admitting to cheating investors out of nearly $6 million in a Ponzi scheme.

Marcello Trebitsch, 37, of Brooklyn, entered the plea in Manhattan federal court in a written deal with prosecutors that recommended a prison sentence of four to five years. Sentencing was set for Nov. 2.

“I am sorry for what I have done and I apologize to the court and my family,” Trebitsch told Judge Vernon Broderick.

Prosecutors said Trebitsch, who is married to Silver’s daughter, solicited more than $8 million from four investors from 2007 to 2014 based on false and misleading representations.

Silver, a Democrat who resigned from his leadership position after his January arrest on corruption charges, has pleaded not guilty and said he will be vindicated. Prosecutors say Silver took nearly $4 million in payoffs and kickbacks.

Prosecutors said Trebitsch told investors they would secure double-digit gains with minimal risk of loss, but then Trebitsch mainly used the investors’ money for his own benefit and to repay other investors after suffering enormous trading losses on the portion of investors’ money that he did invest.

………

In a release, U.S. Attorney Preet Bharara said Trebitsche “ran a multimillion-dollar Ponzi scheme, defrauding investors who put their faith in him and entrusted him with their hard-earned savings. He returned their faith with deceit and self-dealing, lying about his trading losses and using investor money on himself.”

Note that his wife, Michelle Trebitsch (née Silver), is a co-owner of the firm, Allese Capital, as well as being the certified public accountant who did the firm’s books, so it is likely that they will extract some sort of plea, or at least an admission, out of her.

Additionally, it is likely that  and a whole lot of their assets are going to be forfeited.

I’ve got to imagine that US Attorney Bharara would be eager to have Andrew Cuomo in the dock. It would be a major feather in is cap.

Right now, he has the sentence of Silver’s son in law, the possible prosecution of his daughter, and the potential for leaving his grand children penniless as well as parentless for a few years would be powerful  inducements for former speaker Silver to cooperate.

Silver will talk, and only question is whether he gets Cuomo, or he gets one of his closest associates, because Cuomo managed to create a level of plausible deniability in his dealings by using proxies.

Given that Cuomo is a former prosecutor, my guess is that it will be the latter, but I am hoping for the former.