US regulators charge ex-Madoff employee who hid ponzi scheme
The Securities & Exchange Commission has charged “long-time Bernie Madoff employee” Enrica Cotellessa-Pitz with falsifying books and records.
The SEC claims Cotellessa-Pitz falsified records “in order to hide Madoff’s fraudulent investment advisory operations from regulators”.
Cotellessa-Pitz worked for Bernard L. Madoff Investment Securities for more than 30 years and is alleged to have misclassified “hundreds of millions of dollars” of income.
She is also alleged to have falsified statements filed with the SEC and other regulators and prepared statements to deceive regulators.
George Canellos, director of the SEC’s New York regional office, says: “To keep his massive fraud alive, Madoff had to hide as many facts about his advisory operations as possible.
“Cotellessa-Pitz along with other senior BMIS personnel played a critical role in this effort by creating false documents to deceive federal and state regulators.”
David Bonventre, former BMIS director of operations, was previously charged with “falsifying books and records to hide and obfuscate Madoff’s advisory operations”.
The SEC claim Cotellessa-Pitz played a cental role in falsifying records, as directed by Madoff and Bonventre, which Madoff then used to artificially improve the firm’s reported revenue and income.