Thursday, 24 July 2014
Last updated 4 hours ago
Aug 19 2009 | 10:10am ET
A new set of indictments in the Bernard Madoff Ponzi scheme case appears imminent, including those of family members and feeder fund managers.
The Daily Beast reports that prosecutors plan multiple indictments after Labor Day, and that Madoff’s sons—who have denied any wrongdoing and have reportedly not spoken to their father since his arrest eight months ago—are likely facing charges.
“There is enough hard evidence that the U.S. Attorney’s office could provide to a grand jury,” a Federal Bureau of Investigation source told the Daily Beast of Andrew and Mark Madoff, as well as Peter Madoff, the arch-fraudster’s brother and chief compliance officer of his firm.
Still, the source says it’s unclear that prosecutors will go after the Madoff boys.
“They’re in a mess over there,” the source said of the federal prosecutors. “They really don’t know what they’re doing.”
Madoff’s sons and brother, who all worked at his Bernard L. Madoff Investment Securities, are not the only former employees in jeopardy. The Daily Beast says that Annette Bongiorno, who was part of the investment advisory business that proved a $65 billion fraud, will likely face charges that she falsified statements to investors.
Investigators reportedly found a note from Bongiorno at Madoff’s Queens, N.Y., warehouse, ordering an employee to produce phony client statements without argument. If she is indicted, Bongiorno will join her former 17th-floor colleague, Frank DiPascali, who last week pleaded guilty to fraud charges stemming from the Madoff Ponzi scheme.
Finally, the Daily Beast says some of the first indictments will target feeder fund operatives who allegedly participated in the fraud.
“We have finally been able to put most of the pieces of the puzzle together,” the FBI source told the Daily Beast. “We have them, we have corroborating details, we just need a little more and we need to decide the most expeditious way to present them, like the order of the indictments, for one.”
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…