*** BACK OFFICE STAFF OF “BERNARD MADOFF” ARRESTED ***
FROM THE -
JOURNALS of Monte Friesner >
Financial Crime Consultant for WANTED SA >
Saturday November 20, 2010 >
WANTED SA is pleased to post articles ** Compliments of Mr. Kenneth Rijock.
FROM A
DIFFERENT ANGLE by Kenneth Rijock
Financial Crime Consultant, for World-Check
Ponzi Scheme Support Staff also pose Threats to your Bank
The arrest this week, of two female back-office staff*, in the Bernard Madoff Ponzi scheme scandal, reinforces the point that i have been making for some time: you need to identify possible Ponzi scheme activity using accounts at your bank early on, for the ensuing investigation often spreads to all the conspirators, even minor players. The potential for reputation damage is high, especially when media reports that the organisation banked with you**. Closing accounts of suspected Ponzi fraudsters, long before any law enforcement action occurs, minimises the chances that the bank will be named in the news reports. It is humbly suggested that you circulate my article detailing the "red flags" of Ponzi scheme operation to those on your front-line staff as a risk management measure.***
These defendants are accused of, amongst other things, fabricating accounts statements, and supervising the deposit and transfer of investor money. An attorney representing one of the individuals has denied knowledge of the fraud, and one representing the other has indicated that he will defend her on the charges, meaning that we should not expect a guilty plea at this time.
You should seek the assistance of outside counsel familiar with this specific white-collar crime to analyse the indicia of Ponzi scheming you have found.
* JoAnn Crupi and Annette Bongiorno. US Magistrate Case No.: 9:10-CR-08361-ACV (SDNY).
** If you Fail to Catch a Ponzi Schemer at your Bank, World-Check 25 March, 2010.
*** How to Spot Ponzi Schemers at your Bank, World-Check 20 February, 2010
The facts and opinions stated in this article are
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
WANTED SA thanks Mr. Kenneth Rijock of World Check and all the Parties, Law Enforcement and Securities forces who have contributed to this article and their sincere opinions and statements.
WANTED SA states that the facts and opinions stated in this article are those of the author and not those of WANTED SA. We do not warrant the accuracy of any of the facts and opinions stated in this article nor do we endorse them or accept any form of responsibility for the articles.
