Here’s a new development in the Madoff ponzi case: the SEC on Friday charged two computer programmers over their alleged role in covering up the fraud for more than 15 years.
Jerome O’Hara and George Perez are said to have provided the technical support necessary to produce false documents and trading records, and took “hush money” to help keep the scheme going, according to the SEC.
Apparently, there was a special dodgy computer, known internally as “House 17,” used to produce fictitious reports and…
The SEC alleges that O’Hara and Perez had a crisis of conscience in 2006 and tried to cover their tracks by attempting to delete approximately 218 of the 225 special programs from the House 17 computer. But they did not delete the monthly backup tapes. O’Hara and Perez then cashed out hundreds of thousands of dollars each from their personal BMIS accounts before confronting Madoff and refusing to generate any more fabricated books and records.
According to O’Hara’s handwritten notes from the encounter, one of them told Madoff, “I won’t lie any longer. Next time, I say ‘ask Frank,’” meaning that Madoff should rely on DiPascali alone to create the false data and reports.
The SEC’s complaint alleges that Madoff responded by telling DiPascali to offer O’Hara and Perez as much money as necessary to keep quiet and not expose the misrepresentations.
Meanwhile, Larry Levine, an ex-con who now runs consulting firm Wall Street Prison Consultants, brings us news that Bernard Madoff himself has been caught filching fruit from the dining hall at Federal Correctional Institute in North Carolina, where Madoff is serving out at least part of his 150-year sentence.
Madoff was apparently issued with a “shot,” or disciplinary incident report. As Levine told Transworldnews.com:
It’s kind of like getting a ticket…Any cop can write you up, then they hold this Kangaroo Court called a “UDC” (unit disciplinary committee) where they can dismiss it for lack of evidence, or sanction you and pull your visits, telephone or commissary privileges, or just hand out extra duty.
All this on a day when the Madoff’s personal effects go on display in Manhattan ahead of an auction on Saturday.
Related links:
How Bernie Made Basket Cases of His Customers’ Accounts – Securities Industry News