The Fraud Examiner
Five Years On, "Madoff 5" Face Justice
By Scott Patterson, CFE
When you are alleged to be deeply involved in the largest known Ponzi scheme in history, professed ignorance is not an acceptable defense.
That was the message sent by a federal jury in Manhattan last month when they convicted five associates of Bernard Madoff for their role in his $20 billon investment fraud that was exposed in 2008.
CFE’s Report, Testimony Were Key
It is still somewhat little-known that the testifying expert witness in the case is also the Chairman of the ACFE Board of Regents, Bruce Dubinsky, CFE, CPA. Dubinsky, who spent years investigating this fraud with teams of experienced fraud investigators and financial analysts from Duff & Phelps, was retained by the law firm of Baker & Hostetler LLP, counsel for Irving H. Picard, Trustee.
Dubinsky's expert report used in this case was hundreds of pages long and laid out in great detail the fraud and Ponzi scheme, and the mechanics of how it was perpetrated.
Different media outlets reported on Dubinsky’s testimony as the trial progressed. Bloomberg’s Erik Larsen detailed many of Dubinsky’s findings in the case and some of his statements from the witness stand in “Madoff Ex-Employees’ Jury Told of ‘Smoke And Mirrors,’” published October 13, 2013:
The majority of securities trades on the customer statements exceeded actual market volume for the indicated day or had prices outside the reported range of highs and lows, Bruce Dubinsky, a government witness who analyzed the fraud in 2011, testified today in federal court in Manhattan.
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