NEW YORK (CBSNewYork/AP) — A longtime deputy to Bernard Madoff told a jury Monday that auditors were the bane of the Ponzi schemer’s existence.
Testifying in the fraud trial of five of Madoff’s former employees, Frank DiPascali told jurors that when auditors from the U.S. Securities and Exchange Commission moved in to conduct a lengthy investigation, Madoff put them in a room where he could keep an eye on them from his office. He didn’t want them walking around, even to get a cup of coffee without him knowing it, the star witness said. When they did leave, Madoff would search their briefcases, DiPascali added. Madoff also allegedly discussed bugging the room.
As WCBS 880’s Irene Cornell reported, DiPascali, who worked for Madoff for 33 years, testified that his boss would “razzle dazzle” auditors by using computer programs specially designed to make it appear that fake investments were real.