20 January 2017
visit http://www.wolterskluwerfs.com

Madoff programmers generated thousands of random trade documents to dupe auditors, jury told

28 January 2014  |  3730 views  |  0 Computer virus

A New York jury has heard how two former IT men employed by Bernard Madoff allegedly developed a raft of software programs to create fictitious transaction records designed to dupe auditors inspecting the company's books.

During testimony, Richard Dietrich, a senior technician at IBM appearing as an expert witness for the prosecution said the defendants, Jerome O'Hara and George Perez, wrote special software code to generate bogus transaction numbers, dates and time stamps to cover over the cracks in Madoff's $17 billion Ponzi scheme.

Dietrich, who helped to develop the AS/400 computer system used by Madoff, said the programs were designed to assign random international banks as counterparties to fake trades and make false Depository Trust Co. statements. One program generated random time stamps at 15-minute intervals during London trading hours, Dietrich told the jury.

Prosecutors claim O'Hara and Perez got wind of the fraud in 2006 and used the damning information to extort higher salaries and bonus payments from Madoff in return for their complicity.

The two men have both pleaded not guilty.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Madoff trousers iPads

Madoff trousers iPads

10 August 2011  |  8267 views  |  0 comments
Madoff payroll manager pleads guilty

Madoff payroll manager pleads guilty

07 June 2011  |  3256 views  |  0 comments
Madoff programmers indicted

Madoff programmers indicted

19 March 2010  |  5858 views  |  0 comments
Madoff's director of operations arrested

Madoff's director of operations arrested

26 February 2010  |  5416 views  |  0 comments
SEC charges computer programmers over Madoff fraud

SEC charges computer programmers over Madoff fraud

13 November 2009  |  4698 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit wavestone.co.ukVisit capgemini.com

Top topics

Most viewed Most shared
Banks face big profit loss to digitisation - McKinseyBanks face big profit loss to digitisation...
15283 views comments | 85 tweets | 107 linkedin
Seven banks plan blockchain platform for SMEsSeven banks plan blockchain platform for S...
12313 views comments | 48 tweets | 42 linkedin
Accenture beats Brexit blues with largest-ever London startup programmeAccenture beats Brexit blues with largest-...
10567 views comments | 30 tweets | 20 linkedin
hands typing furiouslyBlockchain: Time To Get Your Feet Wet
7278 views 0 | 23 tweets | 9 linkedin
RBI told the time is right to digitise the RupeeRBI told the time is right to digitise the...
7230 views comments | 14 tweets | 12 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job