Two Madoff employees charged with false accounting

TWO LONGTIME EMPLOYEES of Bernard Madoff’s investment company have been charged by the SEC with creating false accounts in order to keep its Ponzi scheme running.

Annette Bongiornio, who had worked at Bernard Madoff Investment Securities (BMIS) since 1968, is accused of regularly creating false records and misleading investors about securities transactions that never occurred. She also faces charges that she created false trades in her own BMIS accounts, enabling her to take out around $14.5m (£9m) on deposits of just $920,000.

JoAnn Crupi is also accused of creating false statements as well as helping Madoff’s friends and family cash out as the fraud began to unravel. It is claimed she prepared cheques for more than $350m for selected investors, which were seized before they could be distributed.

“Bongiorno and Crupi helped create an elaborate edifice of fake accounts, fake trades, and fake profits,” said George Canellos, director of the SEC’s New York office. “Without their active and ongoing assistance, Madoff’s world of lies would have been unsustainable.”


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