Prosecutors Allege Madoff Staff at FaultBanker Resource
March 12, 2014 — 1,213 views
An Assistant US Attorney made the argument that there is ample and convincing evidence of five former employees of Bernie Madoff actively participating and profiting from the gargantuan Ponzi scheme run by their boss. John Zach, an attorney and federal prosecutor, made this argument in his closing arguments as the fraud trial began.
The criminal proceeding against Madoff in the Manhattan federal court is the first to be decided upon by the jury. According to the prosecutor, the defendants continued to tell several lies which enabled Madoff to steal enormous amounts from investors.
According to Zach, the former employees were greedy and evidence collected by the prosecution showed that they received salaries amounting to millions of dollars in total and also trading profits, bonuses and a plethora of unmerited perks.
Defense lawyers have argued that the former employees of Madoff unknowingly did what they were forced to do by a manipulative and dishonest boss who was the mastermind of a fraud worth a staggering $20 billion from a large number of clients scattered all over the world.
The Manhattan federal court conspiracy and securities fraud case is the first instance of a criminal proceeding weighed by a jury as Madoff did not stand trial after pleading guilty. The scam imploded in the last month of December. Madoff is serving a 150 year prison sentence at present.
The Madoff ex-employees who will be sentenced to long prison terms if convicted are Madoff's ex-operations manager, Daniel Bonventre, Annette Bongiorno, who managed bogus trading operations, computer programmers George Perez and Jerome O' Hara, and JoAnn Crupi, who was responsible for overseeing the day to day transaction of the company's bank account.
The prosecutor said that Bonventre falsified the Madoff Securities account books for decades, kept the bank account of the investment advisory hidden from the general ledger and concealed truth from the regulators. He supposedly received approximately $15 million for his role in the fraud. Bongiorno, the sole testifying defendant told the jurors that she was in awe of Madoff and carried out what he said. She was unaware that the tasks were illegal.
Crupi played an important role in the creation of false trading records which fooled the regulators of the Securities and Exchange Commission and auditing firms. O'Hara and Perez wrote a number of computer programs which assisted Madoff in falsifying financial statements and producing radically different records which were subsequently presented to regulators and auditors.