On February 25, 2010, the SEC charged Daniel Bonventre, Director of Operations at Bernard L. Madoff Investment Securities LLC (“BMIS”) who was responsible for running the back office and overseeing the firm’s accounting and securities clearing functions for at least 30 years, with falsifying accounting records to enable the firm’s multi-billion dollar fraud and illegally enrich himself, Bernard Madoff and Mr. Madoff’s family and other employees. According to the SEC’s complaint, Mr. Bonventre disguised Mr. Madoff’s fraud and the financial losses at Mr. Madoff’s firm by misusing and improperly recording investor money to create the false appearance of legitimate income.
The SEC alleged that Mr. Bonventre knew that billions of dollars in investor funds were not being used to purchase securities on behalf of investors. The SEC also alleged that Mr. Bonventre made at least $1.9 million in illicit personal profits from the scheme through fake, backdated “trades” in his own investor account at BMIS.
According to the SEC’s complaint, Mr. Bonventre was responsible for the firm’s general ledger and financial statements that were materially misstated because they did not reflect the manner in which investor funds were maintained and used. Among other things, the SEC’s complaint seeks financial penalties and a court order requiring Mr. Bonventre to disgorge his ill-gotten gains.