An ex-employee of Bernard Madoff on trial for allegedly aiding his $17bn fraud oversaw backdating of trades for account statements that sometimes featured 'cut and paste' data, a former assistant told a jury.
Bloomberg reports that Annette Bongiorno, who worked for Madoff for 40 years and helped run the investment-advisory business at the heart of the Ponzi scheme, would request trade dates and prices as much as a year old be used on account statements to reach pre-determined profit goals for customers, and cut out and tape typed trades onto their statements, Winnie Jackson, the defendant’s former assistant, testified Thursday in federal court in Manhattan.
Bongiorno gave 'very little explanation' when asked how the company’s trading strategy worked, and Jackson didn’t realize anything she was doing was fraudulent while she was following orders, she said.
Jackson said she never saw Bongiorno “cut and paste” account statements, though she said her former boss oversaw the creation of the statements and the practice wasn’t uncommon or unusual. She said tape was used, rather than paste.
Prosecutors showed Jackson and the jury examples of such statements, which included hand-written notes that Jackson identified as Bongiorno’s. The example included “pasted” trades for Microsoft in 2004.
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image: © Clyde Robinson