Federal investigators have arrested former Madoff executive Daniel Bonventre on charges of concealing the scope of the multi-billion dollar fraud and using over $750 million worth of investor funds to support the company’s trading arm.
Investigators describe Bonventre as the director of operations at the Madoff firm from 1978 until the company collapsed in late 2008.
Last march Madoff pled guilty to running the largest investment fraud in history. He is currently serving a 150-year sentence for defrauding investors of some $65 billion by orchestrating a Ponzi scheme.
Up to this point investigators have said that the fraud took place in the company’s investment advisory arm; however, the charges against Bonventre link the investment arm to the proprietary trading arm.
Bonventre has been charged with securities fraud, conspiracy to commit securities fraud, falsifying books and records of a broker-dealer, false filings with the U.S. Securities and Exchange Commission and filing false tax returns. If convicted Bonventre could face up to 77 years in prison.
Prosecutors have vowed to catch every person involved in the multi-billion dollar fraud.
If you have been taken advantage of by a broker contact the Hayes Law Firm for a free initial consultation with one of our experienced investment fraud attorneys.