{"id":38301,"date":"2013-09-27T12:51:05","date_gmt":"2013-09-27T16:51:05","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38301"},"modified":"2013-09-27T13:08:44","modified_gmt":"2013-09-27T17:08:44","slug":"defrauding-hedge-funds-madoffs-accountant-charged-for-fudging-the-numbers","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2013\/defrauding-hedge-funds-madoffs-accountant-charged-for-fudging-the-numbers.html","title":{"rendered":"Defrauding Hedge Funds: Madoff’s Accountant Fudged The Numbers, SEC Says"},"content":{"rendered":"

\"madoff\"<\/a>New York (HedgeCo.Net) – The SEC has charged Bernard Madoff\u2019s\u00a0longtime accountant for his role in the creation of false books and records used in the massive Ponzi scheme.<\/p>\n

“Paul Konigsberg\u2019s assistance resulted in the formation of inaccurate trade confirmations each month as well as the development of phony data and records documenting the fabricated trades that were, in turn, falsely reflected in the ledgers and related books and records at Bernard L. Madoff Investment Securities LLC. (BMIS)”\u00a0The SEC alleges.<\/p>\n

In a parallel action, the U.S. Attorney\u2019s Office for the Southern District of New York also announced criminal charges against Konigsberg.<\/p>\n

\u201cKonigsberg played a vital role in Madoff\u2019s deception of his oldest and wealthiest clients over many years,\u201d said Andrew M. Calamari, Director of the SEC\u2019s New York Regional Office. \u201cKonigsberg\u2019s acquiescence, cooperation, and collaboration were essential to the Madoff fraud.\u201d<\/p>\n

According to the SEC\u2019s complaint filed in U.S. District Court for the Southern District of New York, Konigsberg aided and abetted the falsification of books and records at BMIS from at least the mid-1990s to late 2008. Konigsberg provided tax or accounting services for more than 200 BMIS client accounts.<\/p>\n

Madoff paid him a monthly fee of $15,000 or $20,000 as a \u201cretainer,\u201d Konigsberg also\u00a0received fees directly from BMIS clients for the accounting services that he provided them.<\/p>\n

The SEC alleges that Konigsberg coordinated with BMIS staff to:<\/p>\n