White-Collar Crime

2 Workers Arrested in $65B Madoff Swindle, Accused of Faking Records, Paying Selves & Firm Friends

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Two former longtime back office workers for Bernard Madoff have been arrested following federal indictments concerning their alleged roles in a record-breaking investment swindle of up to $65 billion.

Annette Bongiorno, 62, and Joann Crupi, 49, also face a civil case brought by the Securities and Exchange Commission for allegedly helping Madoff fake the records he needed to pull off the crime, reports Bloomberg.

Crupi is accused as well of helping to arrange for favored Madoff friends and other preferred investors to profit by some $350 million at the expense of others, although at least some of the checks she helped prepare never made it to their intended recipients.

Meanwhile, Bongiorno allegedly took out $14.4 million, via sham trades, from a personal investment account at Bernard L. Madoff Investment Securities LLC into which she deposited a total of $920,000 between 1975 and 2008. And Crupi allegedly obtained $2.7 million directly from investor accounts.

If convicted of all of the securities fraud, tax evasion, conspiracy and books and records falsification charges they face in the Southern District of New York case, the two could be sentenced to as much as 75 years and 65 years in prison, respectively.

Madoff himself was sentenced to 150 yearsfor his role in orchestrating the crime.

Attorney Maurice Sercarz, who represents Bongiorno, says “We look forward to demonstrating that she is not guilty of any of the crimes charged,”

Crupi’s attorney, Eric Breslin, tells the DealBook blog of the New York Times that she intends to “contest the charges vigorously.”.

Related coverage:

ABAJournal.com: “Madoff Trustee Seeks $20.4M from Two Ex-Partners at Milberg Weiss”

ABAJournal.com: “Trustee Sues Madoff’s Wife for $45M, Cites ‘Life of Spendor’ “

ABAJournal.com: “Madoff Aide Pleads Guilty, Says ‘It Was All Fake,’ Judge Nixes $2.5M Bond Deal”

ABAJournal.com: “Madoff Made No Trades for Perhaps 13 Years, Trustee Says”

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