In what one Madoff prosecutor called "another step in this still active and very much ongoing investigation," the U.S. Attorney's Office ordered two longtime employees of convicted Ponzi schemer Bernard Madoff to forfeit $5 million in assets, including a Bentley and a $2.25 million house in New Jersey, the Wall Street Journal Reports.
Annette Bongiorno and JoAnn Crupi both worked for Bernard L. Madoff Investment Securities LLC for more than 25 years. Bongiorno supervised the back office staff, according to Law360, while Crupi handled the firm's receipt of funds.
In the civil lawsuits prosecutors allege that the two former employees "knowingly participated in the fraud." Law360 writes:
"Bongiorno, who was a supervisor of the back office staff...knew the transactions purportedly reflected in the documents were not being conducted, and that the client redemption requests were, in reality, paid with other clients' money, the U.S. Attorney's office said.
Of the other former employee, JoAnn Crupi, Law360 reports:
[Crupi] handled client requests for redemptions and prepared and assisted in the preparation of fabricated documents designed to deceive regulators and outside auditors, the U.S. Attorney's office said...She knew that client redemption requests bore no relationship to the cash on hand, prosecutors said."
Bongiorno and Crupi are the most recent ex-Madoff employees to receive complaints from the U.S. Attorney's Office for their role in the $65 billion fraud. Though the two women do not currently face criminal charges, a number of former Madoff employees have been slapped with criminal indictments.
Among them is Ex-Madoff CFO Frank DiPascall, who was released on bail this week. Last year DiPascall pled guilty to 10 counts, including conspiracy, fraud and money laundering. His temporary release comes after his agreement to forfeit all of his family's assets in a $170 billion order of forfeiture issued by the state on June 18, Business Week reported.