29 June 2017
download the report now

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

28 January 2014  |  3857 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  |  8387 views  |  0 comments
Madoff payroll manager pleads guilty

Madoff payroll manager pleads guilty

07 June 2011  |  3342 views  |  0 comments
Madoff programmers indicted

Madoff programmers indicted

19 March 2010  |  5958 views  |  0 comments
Madoff's director of operations arrested

Madoff's director of operations arrested

26 February 2010  |  5503 views  |  0 comments
SEC charges computer programmers over Madoff fraud

SEC charges computer programmers over Madoff fraud

13 November 2009  |  4817 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
download the report nowvisit www.finastra.comvisit www.response.ncr.com

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9395 views comments | 19 tweets | 38 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
9058 views comments | 10 tweets | 6 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7774 views 0 | 8 tweets | 8 linkedin
Mastercard eyes opportunities to profit from sharing economyMastercard eyes opportunities to profit fr...
7528 views comments | 6 tweets | 6 linkedin
Body blow for PayKey as Apple orders Westpac off its turfBody blow for PayKey as Apple orders Westp...
7165 views comments | 12 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job