Madoff pair 'cashed in on Ponzi scam'
Friday 19 November 2010
Two long-time back-office employees of Bernard Madoff were arrested yesterday on charges that they had helped the disgraced financier dupe investors for decades by making fictitious investments – and that they had cashed in on the epic Ponzi scheme themselves.
FBI agents arrested Joann Crupi at her house in Westfield, New Jersey. Annette Bongiorno was taken into custody from her home in Boca Raton, Florida.
An indictment filed in a federal court in Manhattan alleges that Ms Crupi, 49, and Ms Bongiorno, 62, "executed trades in the accounts of [wealthy clients] only on paper... and that achieved annual rates of return that had been predetermined by Madoff". Ms Crupi was charged with creating false records to cover Madoff's tracks amid reviews by the Securities and Exchange Commission. Prosecutors say that as the scheme unraveled, she "became aware that client redemption requests bore no relationship to [the business's] cash on hand, which by late 2008 was woefully insufficient to meet those requests," the indictment said.
Seized records show that between 1975 and 2008 Ms Bongiorno deposited about $920,000 (£574,000) in her own Madoff account and withdrew more than $14m, the indictment said. Crupi received hundreds of thousands of dollars in "off the books" income, it added.
The women "protected and perpetuated the Madoff mirage while putting very real money in their own pockets," US Attorney Preet Bharara said in a statement. Both are charged with conspiracy, securities fraud and falsifying records.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...