Prosecutors Question Lavish Expenses At Madoff Employees' Trial

Oct 22 2013 | 10:36am ET

Corporate credit-card statements took center-stage yesterday at the trial of five former Bernard Madoff employees.

Prosecutor John Zach showed jurors three years worth of statements from Joann Crupi's corporate card, showing lavish vacations and thousands of dollars spent on wine. Crupi handled the Madoff firm's daily cash balances.

"Did you observe Ms. Crupi passing out almost $2,000 of wine for a Thanksgiving celebration?" Zach asked Charlene White, a former date-entry employee who joined the Madoff firm in 1993. But U.S. District Judge Laura Taylor Swain barred Zach from asking whether the purchases were legitimate business expenses, after White said work matters could not explain the cruises or trips to Las Vegas.

The credit-card statements covered the years 2004 through 2006.

Annette Bongiorno, Daniel Bonventre, Crupi, Jerome O'Hara and George Perez are accused of aiding and abetting Madoff's fraud, which unraveled in late 2008. All five—the first of the 15 people accused in the case to stand trial—deny knowing that their boss was running a scam.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note