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More Charges Coming for Madoff Cohorts

Looks like Bernie Madoff’s right hand man, Frank DiPascali, is squealing like a pig to federal investigators, who are preparing criminal charges against two more Madoff employees.

It’s unclear who the new charges are being brought against, but it appears Bernie’s two boys and his brother may have dodged securities fraud for now.

All three have denied they knew anything about the $68 billion Ponzi scheme as they were focused on the firm's legitimate market-making business. The trio could still face lesser charges of tax fraud from allegedly running various loans through their father’s business, although a source close to the case says sons don't know anything about tax changes.

From the Associated Press:

Although it doesn't specify the tax crimes the family could face, a criminal complaint filed in February against Madoff's operations chief, Daniel Bonventre, implicates Madoff relatives without naming them.

Under Bonventre's watch, it says, the firm "extended more than 15 loans, totaling over $50 million, to Madoff family members and key employees" for the purchase of luxury homes, and "purported to forgive most of these loans after a few years."

The firm, it adds, also "made millions of dollars in payments directly from the Ponzi Scheme Accounts to Madoff, family members and certain employees, including Bonventre. These payments were separate and apart from payments made through the payroll system. ... (Bonventre) did not record, or cause others to record, these transactions at all."

Bonventre has pleaded not guilty to charges he banked nearly $300,000 in undeclared income derived from the fraud.


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