Madoff's Programmers Indicted

jason8 writes with news that two programmers who worked at Bernie Madoff's investment firm have now been indicted on charges of 'conspiracy, falsifying records of a broker-dealer and falsifying records of an investment adviser,' for their role in hiding the firm's activities (PDF) from the SEC and external accountants. Quoting Reuters: "O'Hara and Perez, employed at the firm from 1990 and 1991, respectively, were primarily responsible for developing and maintaining computer programs in the investment advisory unit at the center of the fraud. Many of the programs were run on an IBM server known as 'House 17,' according to court documents. Prosecutors said the men took hush money to help keep the fraud going and designed codes to make up fake trade blotters and phantom records. US prosecutors said the two men worked under the supervision of Madoff and his top aide, Frank DiPascali, to deceive the US Securities and Exchange Commission and a European accounting firm. DiPascali is cooperating with prosecutors, who said his information led to the arrests of the programmers and the now defunct firm's outside accountant."

Comments

So what?

[Hatta]

Wake me up when someone at AIG gets indicted.

I guess the moral of the story is to have morals.

[Agamous Child]

If your boss asks you to break the law, the argument "I was just following orders!" doesn't hold up according to the authorities, especially when your boss decides to "cooperate with them" and throw you under the bus. Always question the motives and the legality of a system you design, and if your boss asks you to break the law, tell them that you won't do it, and if they persist, explain that you are going to contact authorities immediately.

Re:No details

[canajin56]

Also, the courts are granting one of the masterminds leniency in exchange for prosecuting their underlings? Isn't that the opposite of how it works? Reducing the sentence of a drug kingpin in exchange for testimony against 2 of his street dealers, really?

They didn't turn Madoff in.

[Animats]

Also, the courts are granting one of the masterminds leniency in exchange for prosecuting their underlings? Isn't that the opposite of how it works? Reducing the sentence of a drug kingpin in exchange for testimony against 2 of his street dealers, really?

Justice Department policy is that the first one to come forward and turn in the others gets leniency. Those guys could have turned in Madoff, even after Madoff's arrest, until Madoff confessed. But the one "that is second in the door -- even if by only a matter of days or hours, as has been the case on a number of occasions -- will not be eligible for leniency." If your company is crooked, it's very important to know this.

Madoff himself, of course, is Prisoner #61727-054, at Butner Federal Correctional Institution (medium security).