PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that JEROME O’HARA and
GEORGE PEREZ — former computer programmers for Bernard L. Madoff
Investment Securities, LLC (“BLMIS”) — were indicted today by a
federal grand jury in Manhattan on charges of conspiracy,
falsifying records of a broker-dealer, and falsifying records of
an investment adviser.
As alleged in the Indictment returned today in
Manhattan federal court, as well as statements made in the course
of relevant court proceedings:
Beginning in 1990 and 1991, respectively, O’HARA and
PEREZ were employed as computer programmers at BLMIS. They
primarily were responsible for developing and maintaining
computer programs that supported the operation of the BLMIS
investment advisory business (the “IA business”). Many of those
programs were run on an IBM server known within BLMIS as “House
Under the federal securities laws and regulations,
BLMIS was required to keep certain books and records in the
ordinary course of its business. Between 2003 and 2008, BLMIS
was subject to at least five reviews by the United States
Securities and Exchange Commission (“SEC”) and a European
accounting firm that was conducting a review of BLMIS’s
operations on behalf of a European IA client. As part of a
concerted effort overseen by MADOFF and his employee, FRANK
DIPASCALI, JR., to deceive both the SEC and the European
accounting firm, O’HARA and PEREZ developed and maintained
computer programs that generated numerous false and fraudulent
O’HARA and PEREZ are alleged to have known that the
special programs they developed contained fraudulent information
and that they were used in connection with the SEC and European
accounting firm reviews.
O’HARA, 47, of Malverne, New York, and PEREZ, 44, of
East Brunswick, New Jersey, each face a maximum sentence totaling
30 years in prison: five years on Count One (Conspiracy) and a
maximum fine of $250,000 or twice the gross gain or loss from the
offense; 20 years on Count Two (Falsifying Records of a Broker-
Dealer) and a maximum fine of $5 million or twice the gross gain
or loss from the offense; and five years on count Three
(Falsifying Records of an Investment Adviser), and a maximum fine
of $250,000 or twice the gross gain or loss from the offense.
The case is assigned to United States District Judge
LEWIS A. KAPLAN.
Mr. BHARARA praised the work of the Federal Bureau of
Investigation in this case and also praised the United States
Department of Labor’s Employee Benefits Security Administration
and the Internal Revenue Service for their roles in the ongoing
investigation. He also thanked the SEC for its assistance.
Assistant United States Attorneys MARC LITT, LISA A.
BARONI, WILLIAM J. STELLMACH, BARBARA A. WARD, and MATTHEW L.
SCHWARTZ are in charge of the prosecution.
The charges and allegations contained in the Indictment
are merely accusations and the defendants are presumed innocent
unless and until proven guilty.