Madoff's computer programmers in trouble.

Do you suppose it would be a good idea to put them on trial? After all, they were just doing their jobs.

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Originally Posted by reuters

NEW YORK (Reuters) - Two computer programmers designed codes to falsify thousands of fake trade blotters and phantom records for swindler Bernard Madoff and took hush money to help keep the massive fraud going, U.S. authorities said.

The FBI arrested Jerome O'Hara, 46, and George Perez, 43, at their homes on Friday morning on criminal charges of conspiracy for falsifying books and records at both the broker-dealer and investment arms of Bernard L. Madoff Investment Securities LLC (BLMIS) in New York.

"The computer codes and random algorithms they allegedly designed served to deceive investors and regulators and concealed Madoff's crimes," said federal prosecutor Preet Bharara. "They have been charged for their roles in Madoff's epic fraud, and the investigation remains ongoing."

O'Hara's attorney Gordon Mehler said "We intend to enter a plea of not guilty" after Manhattan federal court magistrate judge Ronald Ellis ordered the men released on $1 million bail each with travel restrictions.

Perez's attorney Larry Krantz declined to comment.

Madoff was sentenced to 150 years in prison on June 29. The next day, law enforcement sources said the FBI expected as many as 10 people could be criminally charged for their roles in the decades-long fraud of as much as $65 billion.

Thousands of investors around the world were bilked in Wall Street's biggest investment fraud, a Ponzi scheme in which early investors were paid with the money of new clients.

Friday's criminal complaint said O'Hara and Perez developed computer programs to create books and records for a subset of Madoff investment clients, changed names of account holders, buyers and sellers of shares, altered trade details and made it appear the business traded on the London Stock Exchange.

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I'd say that it will come down to whether or not they understood the significance of what they were doing. If they were paid hush money, that should be an easy case to make.

I predict that the lawyer's case will be that these programmers were building simulators for some kind of training. They had no idea, it would cause this to happen. :)

Exactly. That's the defense I was talking about. If there was hush money, though, the defense is indefensible.

Suppose Maddoff claimed that he was caught because of some bugs in those programmers' code. Could he claim compensation for those bugs from the programmers??

Just an odd thought :p

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Originally Posted by honeybee

Suppose Maddoff claimed that he was caught because of some bugs in those programmers' code. Could he claim compensation for those bugs from the programmers??

Just an odd thought :p

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In that case, the bugs helped solve a crime, so the programmers would be rewarded. :rolleyes: