16 August 2017
visit www.avoka.com

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

28 January 2014  |  3900 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  |  8420 views  |  0 comments
Madoff payroll manager pleads guilty

Madoff payroll manager pleads guilty

07 June 2011  |  3381 views  |  0 comments
Madoff programmers indicted

Madoff programmers indicted

19 March 2010  |  5990 views  |  0 comments
Madoff's director of operations arrested

Madoff's director of operations arrested

26 February 2010  |  5531 views  |  0 comments
SEC charges computer programmers over Madoff fraud

SEC charges computer programmers over Madoff fraud

13 November 2009  |  4859 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10180 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9519 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9320 views comments | 8 tweets | 15 linkedin
HSBC automates documentary trade processing with IBMHSBC automates documentary trade processin...
8362 views comments | 6 tweets | 21 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
7842 views comments | 1 tweets | 2 linkedin