Prosecutors Prepare More Indictments In Madoff Case

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.”


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.