Ex-Madoff CFO Attacked As ‘Con Man’s Con Man’

Mar 7 2014 | 3:04am ET

The government’s fraud case against five former Bernard Madoff employees is built on the testimony of a man whose capacity for lying is exceeded only by that of Madoff himself, lawyers for the defendants said yesterday.

Representatives of two of the five defendants made their closing arguments yesterday as the five-month-long trial draws to a close. Both sought to undermine Frank DiPascali, Madoff’s former finance chief, whose testimony stretched for weeks as he described how the $65 billion Ponzi scheme operated—and how the defendants knowingly helped keep it going for decades.

That story, according to defense attorney Larry Krantz, is just another con job by a “con man’s con man.” Krantz said his client, former Madoff computer programmer George Perez, “was used, abused and manipulated by two of the greatest criminal masterminds of all time: Bermie Madoff and Frank DiPascali.”

Eric Breslin, who represents former portfolio manager JoAnn Crupi, asked jurors to focus on DiPascali’s “corrupt and rotten essence, which permeated this courtroom for a month.”

“Lying was their religion, the very reason for being,” Breslin said of Madoff and DiPascali.

DiPascali has pleaded guilty and is cooperating with prosecutors. While he testified that the five defendants—in addition to Perez and Crupi, they are former operations director Daniel Bonventre, former portfolio manager Annette Bongiorno and former computer programmer Jerome O’Hara—knew about the fraud, he also admitted that he routinely lied to them.

“If they’re in on the fraud, why on earth does Frank DiPascali have to lie over and over to get them to do his dirty work?” Krantz asked. “It makes no sense.” Krantz told the jury that DiPascali “lost a grasp of truth and falsity a long time ago.”

In his closing, Breslin pointed to Buell Frazier, who drove Lee Harvey Oswald to work on the day Oswald assassinated President John F. Kennedy. Noting that Frazier was vilified even though he had no knowledge of Oswald’s plans, Breslin said, “there were a lot of blameless people at Madoff Securities.”

Closing arguments are expected to extend into next week, before the case—the first time anyone has gone to trial in the Madoff matter—goes to the jury.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.