Two computer programmers designed codes to falsify thousands of fake trade blotters and phantom records for swindler Bernard Madoff and took hush money to help keep the massive fraud going, U.S. authorities said.
The FBI arrested Jerome O’Hara, 46, and George Perez, 43, at their homes on Friday morning on criminal charges of conspiracy for falsifying books and records at both the broker-dealer and investment arms of Bernard L. Madoff Investment Securities LLC (BLMIS) in New York.
“The computer codes and random algorithms they allegedly designed served to deceive investors and regulators and concealed Madoff’s crimes,” said federal prosecutor Preet Bharara. “They have been charged for their roles in Madoff’s epic fraud, and the investigation remains ongoing.”
O’Hara’s attorney Gordon Mehler said “We intend to enter a plea of not guilty” after Manhattan federal court magistrate judge Ronald Ellis ordered the men released on $1 million bail each with travel restrictions.
Perez’s attorney Larry Krantz declined to comment.