The SEC has charged Daniel Bonventre, Madoff’s Director of Operations, with securities fraud.
“According to the SEC’s complaint, Bonventre was responsible for the firm’s general ledger and financial statements that were materially misstated because they did not reflect the manner in which investor funds were maintained and used. Bonventure ensured that BMIS financial reports did not reflect the firm’s massive liabilities to investors or the corresponding assets received from investors. To hide the fact that BMIS normally operated at a significant loss, the firm used more than $750 million in investor funds to artificially improve reported revenue and income.
The SEC alleges that Bonventre also helped Madoff, his lieutenant Frank DiPascali, Jr., and others orchestrate lies to investors and regulators when investment advisory operations at BMIS came under review. With Bonventre’s assistance, they made serial misrepresentations to external reviewers by manufacturing reams of false reports and data.”
…
This is the SEC’s seventh enforcement action in the Madoff fraud since the scheme collapsed in December 2008. The Commission previously charged Madoff and BMIS, DiPascali, and auditors David G. Friehling and Friehling & Horowitz CPAs, P.C., who have all pleaded guilty to criminal charges related to their conduct. The SEC also charged certain feeder funds with committing securities fraud, and charged two computer programmers at Madoff’s firm for their roles in covering up the scheme.
Sources:
SEC Press Release – SEC Charges Madoff’s Director of Operations with Falsifying Accounting Records and Siphoning Investor Funds