Frank DiPascali, who had been Bernie Madoff's CFO and pleaded guilty yesterday to 10 felony counts, summed up the scheme with the kind of clarity that has been missing up to now:

--"I knew it was criminal, and I did it anyway,"

--"No purchases or sales of securities were actually taking place in their accounts," Mr. DiPascali said. "It was all fake. It was all fictitious. It was wrong, and I knew it was wrong at the time."