Madoff Offers Help In Lieutenants’ Sentencing

Oct 15 2014 | 8:19am ET

Facing more than eight years in prison at his sentencing next month, a former Bernard Madoff computer programmer will take help wherever he can get it—even if it is from Madoff himself.

The arch-Ponzi schemer has offered his assistance in discrediting his former operations chief, whose testimony was critical in the convictions of George Perez and four other former lieutenants accused of aiding and abetting Madoff’s $65 billion fraud. Only Larry Krantz, Perez’s lawyer, took him up on it.

In e-mails to Krantz, Madoff rejected Fran DiPascali’s story that he, Perez, another computer programmer, Jerome O’Hara, and account manager Joann Crupi threw around a set of phony trading records and put them in a refrigerator to fool regulators into believing they were not hot off the printer. Madoff called that testimony “absurd.”

“It was standard operating procedure during any regulatory exam for the examiners to request firms to print and produce a customized computer report that reflected particular trades on specific periods as opposed to submitting a run that had tons of trades that appeared on our normal run of transactions,” Madoff wrote. “The examiners were well aware that these records were just produced.” He also rejected DiPascali’s allegation that Perez and O’Hara were in on the fraud; Madoff said he carefully kept the scheme from them.

“There is no way that George or Jerry would think that the records they produced were part of any fraud,” Madoff wrote. “It was only Frank that was aware of this.”

Madoff, at Krantz’s request, also provided his recollection of a key meeting between himself and Perez and O’Hara. DiPascali suggested that the two had been paid off during that meeting, but Madoff said he lied to them, telling them “of course” he was making the trades shown on the report.

“I immediately told them I did not want them or anyone else to perform any job that they were uncomfortable with,” he wrote.

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