Authorities Put the Screws To Madoff Accountants
A few more names you may be hearing from time to time in coming weeks and months.
Authorities are trying to determine who helped Mr. Madoff carry out what they say appears to be at least a 30-year scheme that may have caused at least $50 billion in losses. They are seeking information from the accounting firm that handled Mr. Madoff's audits for decades and are examining the role of Frank DiPascali, who dealt with client accounts and worked at Mr. Madoff's firm for more than 30 years, said a person familiar with the matter.
"If you wanted anything, a new account, money in, money out, you called Frank," said one Madoff investor. "Nothing moved in that office without him, operationally," this person said.
"Frank DiPascali would like to see investors get back whatever they can," said Marc Mukasey, a lawyer for Mr. DiPascali. He declined to comment further.
After Mr. Madoff's arrest on Dec. 11, investigators from the Securities and Exchange Commission showed up at the Madoff firm's headquarters in Manhattan and questioned Mr. DiPascali. He told the SEC he didn't know who was responsible for clearing and settling trades in the investment-advisory side of the firm, according to an SEC memorandum reviewed by The Wall Street Journal. He "responded evasively," the SEC memo said.
Investigators issued a subpoena to Frank DiPascali a New City, N.Y., accountant who audited the Madoff firm's financial statements, and are seeking documents related to the Madoff firm going back to Jan. 1, 2000, said a person familiar with the matter. He has until Dec. 29 to fulfill the request. Andrew Lankler, a lawyer for Mr. Friehling, declined to comment on his client's knowledge of the Madoff investment-advisory business.
Handcrafted by Flip on December 23, 2008 |
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