Report: Madoff Used Fake Trading Tickets

By: Daniel Carty
Topics: Who's To Blame?

(AP Photo)

A top aide to disgraced money manager Bernard Madoff had employees generate trading tickets, thought to be fake, in order to dupe investors into thinking their returns were legitimate, reported Monday.

According to Journal reporter Amir Efrati, Annette Bongiorno directed two assistants to research daily stock prices, at times dating back several months, and use the information to produce trading tickets that would reflect the robust returns Madoff had become famous for.

"This is how it was done – there were all these thousands and thousands of trade confirmations puporting to sort of signify that there were trades that occurred and we know now that, obviously, there weren't trades at least for 13 years and probably a lot longer than that – maybe decades," Efrati told CBS News.

Irving Picard, the court-appointed trustee charged with sorting out the Madoff mess, indicated last month that there was "no evidence to indicate securities were purchased for customer accounts."

Madoff is scheduled to appear in federal court Thursday and is expected to plead guilty to charges that range from securities fraud to money laundering, reports the Journal. U.S. District Judge Denny Chin invited victims of Madoff's alleged $50 billion ponzi scheme to the hearing – the very same people who got bogus client statements in the mail each month.

"For the most part, the people who got these statements had no reason to believe anything was wrong," said Efrati. "They showed these statements to their accountants, their accountants signed off on them."

But looking back at the paper trail, Efrati said that it was possible to detect that something was amiss.

"They say that the statements didn't make sense at the time and that you could, by scrutinizing client statements that were going out every month, deduce that something was wrong."

The two assistants, Semone Anderson and Winnie Jackson, offered information on the alleged fake tickets to the U.S. attorney's office in what is called a proffer agreement, which protect informants from having their statements used against them as long as they are truthful, reports the Journal.

Prosecution interviews seem to have focused initially on low-level employees and may build to include upper-level members of Madoff's operation.

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by loveoflife November 11, 2009 2:03 AM EST: Carlo Pietro Giovanni Guglielmo was the first to create the "Ponzi Scheme". He was caught sent to prison, for fraud, and other things and then deported back to Italy.
He came from a poor family just like Bernie Madoff did. Bernie's parents sold stocks also, and got caught.
Guess who carried on the legend? Good ole Bernie...started at the age of 15.
This was a very shy introvert man who could speak to no one, until he started taking money from others and bought himself a new suit, a beautiful car, and so many other Things.

Why is it you did such an awful thing?

Trust me, there is still more to come from this Madoff Case.
He has 14, 000 names and more people that he is covering up for. They will soon be found out and taken to court.

A shallow man has to hide his dealings in a warehouse, with old computers, and a staff that he could only trust. His wife, sons, and brother knew about this as much as he did.
Again, there are many more men that will be found out that helped Bernie scam others.

Well Bernie, enjoy your bolony sandwiches, walks, nice naps at the Grey Bar Hotel. You will be there for a Long while.

No more matzoh ball soup for you!

Peace; Reply to this comment


by brianbwb-2009 March 10, 2009 4:57 AM EDT: Posted by anon00-2009

It is online, easy enough to find, but since Emperor Constantine and King James are long dead, and wouldn't have agreed to its' inclusion into the Bible anyway, it stands little chance of making it into the holy myth.; Reply to this comment


by brianbwb-2009 March 10, 2009 4:52 AM EDT: "... I place him as the LAST true Patroitic, Country first, Republican President." Posted by homespunlady

I would almost agree with you totally, except for one item, the reason Ike warned about the military industrial complex was that he saw the seeds of what became the Vietnam debacle being planted in Cambodia.

He saw that a scam of historic proportions and deadly intent, was starting to take shape even during his presidency, but for some reason, he felt himself powerless to truly expose it, and act in America's true interest to stop it, choosing instead the vague warnings that were only deciphered ten years later.

He also chose to ignore the virulence of Jim Crow, which was growing into a true terrorist campaign, with the bombing of churches, the murders of community organizers becoming common tactics. This was also not in America's best interest.

But I'll give you this, he was much less of a liar than succedding presidents, of both political stripe.; Reply to this comment


by apprxam March 10, 2009 1:30 AM EDT: In 2000, on Clinton's watch, Madoff WAS turned in to the SEC.

The SEC did nothing. Which precluded Bush from being able to do anything, because then it would be double jeopardy. UNCONSTITUTIONAL.

Posted by sndkzyaa

Blame Clinton all you want, but double jeapordy only applies when a trial is has occurred and the defendant is aquitted.

No double j, so your boy Bush and the other RePugZ are as guilty as Clinton.; Reply to this comment


by homespunlady March 10, 2009 12:28 AM EDT: Something to think about..
When Republican President "IKE" Eisanhower was in office the TOP tax rate on the Wealthiest was 91 PERCENT!

And Yet SO MANY look back fondly to those years as some of the BEST for growth and opportunity calling it the time of our "greatest Generation".

In his FAREWELL ADDRESS Eisenhower WARNED of the growing menace of a "military-industrial complex" left unfettered.

I place him as the LAST true Patroitic, Country first, Republican President.; Reply to this comment


by tbuckl March 9, 2009 11:53 PM EDT: "I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."; Reply to this comment


by tbuckl March 9, 2009 11:32 PM EDT: 2008 Preamble to Declaration of Independence
We the rich hold these truths to be undeniable; that all rich people are created above all others & that from our superiority is created by corrupted God, that we derive our rights inherent & inalienable, above anyone else, we decide what the preservation of life, & liberty, & the pursuit of happiness is; that to secure our position to these ends, our token government is instituted by the rich, deriving their just powers because they have the armies and from the consent of the rich; that whenever any person shall become destructive of our rules, it is the right of the rich to destroy, alter or to abolish any rule, law that interfere with the rule of the rich, & to institute new definitions at will and without notice , laying ours foundation on the backs of the not rich. We shall organize our powers in such a form, as to keep all non-rich at bay and shall protect our safety & happiness by force should the poor rise up due to the heavy yoke around their necks.; Reply to this comment


by sndkzyaa March 9, 2009 10:20 PM EDT: Anyone who follows the law is a fool.
Posted by jumkey at 3:28 PM : Mar 9, 2009

Unfortunately, it appears that way.

And it appears Obama has no intention of changing that.; Reply to this comment


by sndkzyaa March 9, 2009 10:14 PM EDT: Let me get this straight: nobody in this guy's office ever executed a buy order; yet nobody guessed Madoff was running a Ponzi scheme?
Posted by jahpdq at 7:03 PM : Mar 9, 2009

Yes, somebody DID!

In 2000, on Clinton's watch, Madoff WAS turned in to the SEC.

The SEC did nothing. Which precluded Bush from being able to do anything, because then it would be double jeopardy. UNCONSTITUTIONAL.

Thanks to Clinton, this scum wad stole money from charities and kept millions of it for himself.

There's a special place in the hot place for Madoff.

Madoff is the kind of person who gives rich people a bad name.; Reply to this comment


by hamiltongrad March 9, 2009 9:43 PM EDT: This man is guilty, and should go to jail. But, we need to take a broader view, and ask what is wrong with our society , where so many people have so little, and some few have so much. There should be a total that any one person should have and make, say 500,000 total assets , and 100,000 a year pay. Above that, the money should be put into a trust fund for other less fortunate people, and children just trying to get by everyday. Given that, there would be no such "greed", and we could focus on our real needs.
As far as energy- who asked ? - well, we need to build only 2 - 3 types of cars, all hybrids, and limit driving to only necessary trips, to be approved in advanced by an "energy" monitor, so that we carpool to work, and to the communal grocery outlets ( another subject.) . Buildings would save so much more energy and heat by an umbrella committee that would help individuals just use "but conserve", thus stopping GLOBAL WARMING.
Again, without the need for greed, there would be very little in the way of crime, punishment or blame.

Fran; Reply to this comment