Bernie Madoff

Five former aides to Bernard Madoff who spent decades working for his firm were found guilty of helping run the biggest Ponzi scheme in U.S. history, a $17.5 billion fraud exposed by the 2008 financial crisis. The three men and two women, hired by Madoff with little financial experience, were convicted on all counts. The defendants failed to persuade a federal jury in Manhattan they were ignorant of the fraud despite being part of the inner circle at his New York-based firm…The defendants are Annette Bongiorno, who ran the investment advisory unit at the center of the fraud; Joann Crupi, who managed large accounts; Daniel Bonventre, the ex-operations chief of Madoff’s broker-dealer; and computer programmers George Perez and Jerome O’Hara, accused of automating the scam as it grew rapidly in the 1990s. [Bloomberg]

The jurors considering the fate of Bernie Madoff’s co-Ponzi schemers/unwitting patsies are breaking their own record every day they fail to reach a verdict. Read more »

Annette Bongiorno never wanted anything more than to be Bernie Madoff’s secretary. She didn’t know what a Ponzi scheme was until the day her hero went down, and is still unclear on what exactly the S&P500 or a T-bill are. And it’s not like she backdated the (fake) Lehman stock in her $50 million account to before the bank’s demise because she needed the money—and anyway, Bernie never told her that backdating of trades that hadn’t actually happened was wrong, so how was she to know? Read more »

In retrospect, JPM could’ve maybe solved that puzzle using the clues Madoff provided. Maybe. Read more »

“On the five-year anniversary of Bernie Madoff outing himself as the world’s most notorious white-collar criminal, the financial world still hasn’t learned some simple lessons. First, business journalists should stop listening to the fraudster himself. His multibillion-dollar scam caused at least three people to take their own lives, including his son Mark — yet Madoff remains mostly unrepentant and uncooperative. He continues to blame “the greed of others” and loves to offer his opinions on how Wall Street really works…Truth be told, I’m one of those reporters who spoke to Madoff in the years since he turned himself in. He banned me from contacting him in prison after I concluded a couple of years ago that he’s a delusional sociopath. It was one of the proudest days of my life.” [NYP]

Bernard Madoff’s former computer programmers asked for payment in diamonds to continue aiding the con man’s $17 billion Ponzi scheme in 2006 after they became uncomfortable with their role, a jury was told. The “crazy” request from Jerome O’Hara and George Perez was turned down and the men were given salary increases and bonuses, Frank DiPascali, Madoff’s former finance chief, testified today in Manhattan federal court in the trial of the men and three other ex-colleagues. “Where the hell am I gonna get a bag of diamonds?” said DiPascali, who pleaded guilty in the case and is testifying in a bid for a lighter sentence. The programmers, who said they were “in a bit of a pickle,” agreed on a “fairly substantial percentage increase” to their salaries, he said. [Bloomberg]

  • 09 Dec 2013 at 4:26 PM
  • Banks

JPMorgan Legal Liabilities: An Update

In honor of the five-year anniversary of the Fall of the House of Madoff (Wednesday, if it’s not already a fixture in your Outlook calendar), we bring you an update on the House of Morgan’s latest negotiations with a representative of the U.S. government, this time over whether it should have filed a form that probably would have been ignored or ineptly investigated anyway, in which it would have suggested that maybe something was amiss on the 17th floor of 885 Third. Read more »