Daniel Bonventre
Encyclopedia
Daniel Bonventre is one of five former Madoff employees charged in the Madoff investment scandal
.
He had worked as one-time company director of operations and as an accountant for Madoff since the 1960s. He was arrested on February 25, 2010 and charged with allegedly having created false and fraud
ulent books and records, conspiracy, securities fraud
, and tax-related charges. He is also being sued by the SEC
for falsifying records.
Prosecutors claim that Bonventre used $154 million of clients' funds to help obtain a $145 million loan. He has also been charged with concealing over $270,000 in income tax between 2003 and 2007.
Another criminal complaint alleges that he helped to arrange millions in illegal payments and loans to Madoff family members and unidentified employees, some of which were used to purchase luxury homes.
In April 2006, almost three years before other investors lost their life savings, Bonventre emptied his personal accounts at the firm.
He may be sentenced to a maximum of 77 years in prison if convicted.
On February 25, 2010, he was freed on a $5 million bond.
On December 21, 2010, prosecutors sent a letter to Bonventre's defense lawyer, Andrew J. Frisch, demanding that none of the $820,000 given to him to defend the case be used. The reason for this is because the funds would be subject to forfeiture if Bonventre is convicted of criminal charges.
In January 2011, Bonventre filed a suit demanding that the indictment against him be dismissed because the prosecutor had made efforts to seize his defense funds.
Madoff investment scandal
The Madoff investment scandal broke in December 2008 when former NASDAQ chairman Bernard Madoff admitted that the wealth management arm of his business was an elaborate Ponzi scheme....
.
He had worked as one-time company director of operations and as an accountant for Madoff since the 1960s. He was arrested on February 25, 2010 and charged with allegedly having created false and fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent books and records, conspiracy, securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
, and tax-related charges. He is also being sued by the SEC
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
for falsifying records.
Prosecutors claim that Bonventre used $154 million of clients' funds to help obtain a $145 million loan. He has also been charged with concealing over $270,000 in income tax between 2003 and 2007.
Another criminal complaint alleges that he helped to arrange millions in illegal payments and loans to Madoff family members and unidentified employees, some of which were used to purchase luxury homes.
In April 2006, almost three years before other investors lost their life savings, Bonventre emptied his personal accounts at the firm.
He may be sentenced to a maximum of 77 years in prison if convicted.
On February 25, 2010, he was freed on a $5 million bond.
On December 21, 2010, prosecutors sent a letter to Bonventre's defense lawyer, Andrew J. Frisch, demanding that none of the $820,000 given to him to defend the case be used. The reason for this is because the funds would be subject to forfeiture if Bonventre is convicted of criminal charges.
In January 2011, Bonventre filed a suit demanding that the indictment against him be dismissed because the prosecutor had made efforts to seize his defense funds.
See also
- Affinity fraudAffinity fraudAffinity fraud includes investment frauds that prey upon members of identifiable groups, such as religious or ethnic communities, language minorities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group...
- Financial crisis of 2007–2010
- Participants in the Madoff investment scandal
- Recovery of funds from the Madoff investment scandal