Attorneys File Even More Charges against Madoff Employees

Attorneys File Even More Charges against Madoff Employees

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Attorneys File Even More Charges against Madoff Employees

On October 1, 2012, the US Attorney’s Office for the Southern District of New York announced that Daniel Bonventre, Annette Bongiorno, Joann Crupi, Jerome O’Hara, and George Perez received additional charges in a superseding indictment.  All of the defendants were long-time employees of Bernard L. Madoff Investment Securities LLC.  

The first indictment in November of 2010 stated that conspiracy to defraud clients started around 1992.  The superseding indictment alleges that conspiracy started in the 1970s or even earlier.  Two new charges are included in the superseding indictment as well, including bank fraud in connection to corporate and personal loans as well as tax offenses.  

According to the superseding indictment, the defendants acted in the following ways:

Bongiorno was in the Investment Advisory (IA) business for about 40 years and managed accounts with a cumulative balance around $8.5 billion.  Crupi was in the IA business for 25 years and managed BLMIS IA accounts that had a balance around $900 million up to November 30, 2008.  Both of these employees handled false account statements.  

Bonventre was an employee of BLMIS for 40 years and the director of operations.  He was in charge of Financial and Operational Combined Uniform Single Reports with the SEC and knowingly presented inaccurate reports.  He also presented false tax returns to show tax auditors.  

O’Hara and Perez were computer programmers for BLMIS.  They are accused of creating programs hid the nature of the business, changed names of account holders, changed information about shares and transactions, and more.  

Bonventre faces 22 counts, Bongiorno faces 10 counts, Crupi faces 13 counts, O’Hara faces 8 counts, and Perez faces 8 counts.  You can view a chart of the offenses and maximum penalties at the following link: https://www.fbi.gov/newyork/press-releases/2012/manhattan-u.s.-attorney-files-additional-charges-against-former-employees-of-bernard-l.-madoff-investment-securities-llc.

U.S. Attorney Preet Bharara stated, “As we have said repeatedly since this breathtaking fraud was first discovered four years ago, we will not rest until all the alleged participants and enablers are made to answer for their conduct.”  

Source: Federal Bureau of Investigation

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