Bernard Madoff added the son of a 'key' executive to his payroll even though he didn’t work there, a jury was told in the trial of five ex-employees accused of aiding the con man’s $17bn Ponzi scheme.
Bloomberg reports that Craig Kugel, who pleaded guilty in June 2012 to a tax scheme that gave salaries and benefits to people who weren’t Madoff employees, testified Tuesday in federal court in Manhattan that the son of Daniel Bonventre, the firm’s operations chief, was listed as an employee so he could keep receiving company health insurance after graduating from college.
At a meeting in 2007 between Kugel and Madoff’s brother Peter Madoff, another executive at the firm, 'Bernie Madoff walked in and interrupted me and said Daniel Bonventre had asked him how his son could' stay on the plan and that the elder Bonventre was a 'key employee,' Kugel said. 'He said, ‘We need to help him out and do something for his son'.
Bonventre’s son, Daniel Bonventre Jr. hasn’t been accused of any wrongdoing and isn’t involved in the case.
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image: © U.S. Department of Justice