Madoff Secretary, Longtime Aide Arrested

Nov 18 2010 | 12:16pm ET

Almost two years after Bernard Madoff's Ponzi scheme collapsed, two of his closest aides have been arrested.

Annette Bongiorno, Madoff's secretary for more than 25 years, and Joann Crupi, who handled Bernard L. Madoff Investment Securities' daily cash balances, were picked up at their homes in Boca Raton, Fla., and Westfield, N.J., respectively. Charges against the two are to be unsealed later today.

Bongiorno and Crupi were also sued by the Securities and Exchange Commission. The two have already been sued by court-appointed Madoff trustee Irving Picard for $20 million, and earlier this year federal prosecutors filed forfeiture claims against them totaling more than $7 million.

The two women bring to seven the total number of Madoff employees who have been arrested in the case. Madoff, his CFO Frank DiPascali, and firm accountant David Friehling have all pleaded guilty—Madoff himself is serving a 150-year sentence.

Three back office employees charged earlier this year pleaded not guilty. Crupi's lawyer said she would contest the charges; like Bongiorno, she worked for Madoff for more than a quarter-century.

The arrests come more than a year after the Daily Beast reported that Bongiorno was likely to be charged with falsifying statements to investors. Investigators reportedly found a note from her at Madoff's Queens, N.Y., warehouse ordering an employee to produce phony client statements without argument.

The Daily Beast had also reported that criminal charges against Madoff's son and brother, and some of Madoff's feeder funds, were likely, although none have yet been charged.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR