Please submit your concern

Explanation:

Option 1 can be eliminated from the lines “…his wife and sons were guilty too… ”
Option 3 can be ruled out from “Despite the widespread fascination.. crime-family “capos” …”
Option 4 can be inferred from “… attacks on the Madoff family were a sharp departure from the typical public reactions to cases of white collar crime…”
Option 2 is incorrect, according to the passage, “… the public outcry against Ruth Madoff and her sons began almost from the instant of Madoff’s arrest and did not cease. By the time he pleaded guilty, it was deafening.” We can thus, infer from the passage that Madoff was arrested and he pleaded guilty only later.
Hence, the correct answer is option 2.