Meridian Star

New Today

October 7, 2013

NYC fraud trial to begin for 5 ex-Madoff employees



"Suffice it to say that the government's investigation has revealed that, over the course of the multi-decade fraud alleged in the indictment, a number of Madoff Securities employees and customers — including expected witnesses, defendants, and others — were engaged in romantic or sexual relationships," prosecutors said in court papers.

The government said Madoff himself was engaged in a love triangle with one of the defendants.

U.S. District Judge Laura Taylor Swain, a calm, thoughtful presence on the bench, has not yet said for sure whether the salacious allegations can be aired in the courtroom.

Yet, she has excluded much of the evidence of the lavish lifestyles enjoyed by the defendants as Madoff splashed them with tens of millions of dollars even as the Ponzi scheme grew closer to its abrupt culmination.

Jurors won't hear about Bongiorno's Mercedes or her vacation home or her shopping forays to pricey department stores.

As her lawyers wrote in persuading the judge to exclude personal expenses: "The government seeks to tap into the public's generalized anger at 'Wall Street Greed,' which has the potential to result in an unjust verdict 'fabricated' from the jury's emotional response to proof that is not tethered to any element of the charges against Ms. Bongiorno."

Crupi's lawyers made a similar argument, saying "whether she purchased a beach house or not, went on vacation or not, bought a deluxe refrigerator or not, proves nothing about what happened ... or what Ms. Crupi knew."

Still, the judge is allowing into evidence information about the beach house and a Caribbean vacation for another defendant because Madoff's firm directly helped fund them.

And the first trial may not be the last.

Just days ago, prosecutors charged a 77-year-old accounting executive, saying he directed others since at least the early 1990s to falsify records and help conceal Madoff's fraud. He, too, has pleaded not guilty.

Text Only
New Today
Biz Marquee
New Today

Do you think people should be allowed to carry firearms into government buildings?

     View Results
Twitter Updates
Follow us on twitter
AP Video
Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide