Madoff used noviced workers to keep Ponzi alive

Bernard Madoff 'utilized' workers with a low level of education and professional training to keep his $17bn Ponzi scheme alive for so long, a government witness told a jury in the trial of five former employees.

Bloomberg reports that Bruce Dubinsky, a forensic accountant whose team analyzed the fraud in 2011, made the remark about the workers in a 2012 deposition and confirmed the words yesterday under cross-examination by defence lawyers in Manhattan federal court.

Inexperienced workers 'were being utilized to continue the scheme', Dubinsky said in the deposition, which was taken in a lawsuit brought against former Madoff customer Saul Katz, an owner of the New York Mets, by the trustee unwinding Madoff’s company.

'Utilized’ is another word for ‘used,’ right ?' Eric Breslin, the lawyer for defendant Joann Crupi, who managed large accounts for Madoff, asked Dubinsky Tuesday.

'Yes', Dubinsky said.

Breslin and the lawyers for the other four defendants told the jury during their opening statements on 17th October that Madoff duped their clients, hiring them when they were young and inexperienced. The employees saw him as almost like a god or the Wizard of Oz, the lawyers said.

Crupi joined Madoff’s company straight out of college in 1983.

To access the complete Bloomberg article hit the link below:

Madoff Fraud Driven by Novice Workers, Accountant Says

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image: © Greg Habermann

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