The Madoff scandal is unravelling like a carpet retailer in a recession.

The WSJ reports that Frank DiPascali, who for decades helped to run Bernard Madoff’s investment-advisory operation and could become a central witness against other individuals in the fraud case, is expected to plead guilty to fraud charges on Tuesday, according to court documents filed by federal prosecutors on Friday.

Some suspect that others at the firm or other Madoff family members could be implicated by DiPascali. But far more explosive would be evidence pointing to the complicity of outside investment managers.

These firecrackers add to the storm gathering around potentially connected parties. Joseph Cotchett, the San Francisco trial lawyer acting for victims of the fraud who recently interviewed Madoff in prison claims that the financier told him during a 4 1/2-hour prison interview in North Carolina exactly how the fraud took place. New defendants are likely to be added to his litigation claim.

The New York Post has sources close to Cotchett’s legal team that have suggested  big financial firms, may be among the new targets and that a likely target could be JPMorgan Chase, which has been accused of pulling its money from Madoff ahead of the breaking scandal, leaving its clients behind.