Welcome!

PHP Authors: Liz McMillan, Carmen Gonzalez, Hovhannes Avoyan, Lori MacVittie, Trevor Parsons

Related Topics: Mobile IoT, Industrial IoT, Microservices Expo, Linux Containers, PHP, Apache, Cloud Security

Mobile IoT: Article

Madoff Programmers Busted

The pair is looking at spending the rest of their lives in prison

Two Madoff computer programmers who authorities say made the whole decades-long $65 billion Ponzi scheme possible were arrested Friday and brought up on criminal charges of conspiracy, falsifying the books and records of a broker-dealer and falsifying the books and records of an investment advisor. The SEC, which never tumbled to the ripoff before Madoff up and confessed last December, added civil charges.

The pair is looking at spending the rest of their lives in prison.

Madoff, their 71-year-old employer, is already doing 150 years. He has consistently maintained that he acted alone.

John O’Hara, 46, of Malverne, Long Island and George Perez, 43, of East Brunswick, New Jersey were arrested at their homes first thing Friday morning by the FBI and hauled off to New York to be arraigned.

They worked for Bernie Madoff from the early 90s until last December when he was busted after confessing to the epic fraud.

The government says the “computer codes and random algorithms they allegedly designed served to deceive investors and regulators and concealed Madoff’s crimes.”

Their programs supposedly created books and records for a subset of Madoff’s clients that hid the scope and nature of the business; changed the names of account holders to explain to the SEC why it couldn’t find client securities at the Depository Trust; created false and fraudulent order entries, execution reports and commission statements; created false documents to make it look like Madoff bought and sold securities in London; and created false client statements.

There is no evidence that Madoff ever traded a dime.

In 2006 in what the government called a “crisis of conscience” after the SEC and a European accounting firm started poking around, the pair destroyed or at least attempted to delete 218 of the 225 IBM mainframe programs written to cover Madoff’s tracks and closed their personal accounts with Madoff’s firm, reportedly withdrawing hundreds of thousand of dollars each.

After O’Hara told Madoff a few months later in a handwritten note found by the FBI “I won’t lie any longer” they got hush money to keep quiet.

Madoff reportedly instructed that they be given “whatever they wanted to keep them happy.” Their salaries were upped 25% and they got paltry $60,000 bonuses so as not to attract attention.

The men are only the fourth and fifth Madoff people to be charged.

Madoff’s second-in-command Frank DiPascali and his auditor David Friehling have guilty and await sentencing.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
After years of investments and acquisitions, CloudBlue was created with the goal of building the world's only hyperscale digital platform with an increasingly infinite ecosystem and proven go-to-market services. The result? An unmatched platform that helps customers streamline cloud operations, save time and money, and revolutionize their businesses overnight. Today, the platform operates in more than 45 countries and powers more than 200 of the world's largest cloud marketplaces, managing mo...
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
AI and machine learning disruption for Enterprises started happening in the areas such as IT operations management (ITOPs) and Cloud management and SaaS apps. In 2019 CIOs will see disruptive solutions for Cloud & Devops, AI/ML driven IT Ops and Cloud Ops. Customers want AI-driven multi-cloud operations for monitoring, detection, prevention of disruptions. Disruptions cause revenue loss, unhappy users, impacts brand reputation etc.
In an age of borderless networks, security for the cloud and security for the corporate network can no longer be separated. Security teams are now presented with the challenge of monitoring and controlling access to these cloud environments, at the same time that developers quickly spin up new cloud instances and executives push forwards new initiatives. The vulnerabilities created by migration to the cloud, such as misconfigurations and compromised credentials, require that security teams t...