Madoff Backlash: 1 Beaten, 2 Indicted
March 18, 2010
The fallout from the Bernard L. Madoff ripoff of $20 billion or more of investor money continues.
And one person taking the punch this time is Madoff himself, whose nose apparently was broken.
While prison authorities originally rebuffed reports of an altercation involving the former vice chairman of the National Association of Securities Dealers in December, the Wall Street Journal has confirmed that a fight did break out.
Madoff was physically assaulted by another inmate and moved on Dec. 18 to the prison's low-security medical center for treatment. Here is the Journal's report.
Separately, two former programmers for the Madoff securities scam were indicted by a federal grand jury in Manhattan.
Jerome O’Hara, 47, and George Perez, 44, previously had been charged in the case. In the indictments they are accused of developing and maintaining the computer programs used in Madoff’s fraudulent investment-advisory business.
“O’Hara and Perez are alleged to have known that the special programs they developed contained fraudulent information and that they were used in connection with the SEC and European accounting firm reviews” of Madoff’s business, according to a statement by U.S. Attorney Preet Bharara’s office announcing yesterday’s indictments.
Here is Bloomberg's report.
How Madoff emptied investor accounts by filling them with batches of real-looking but never-made trades was reconstructed in a Securities Industry News investigation in November.
