Ex-Madoff Workers Chose Jury Trial Over Plea Deal

On behalf of Raymond Giudice P.C posted in Criminal Defense on Wednesday, October 16, 2013.

Five former employees of Bernard L. Madoff on trial over allegations they aided in his $17 billion fraud probably scrapped plea talks involving harsh prison terms to gamble for total exoneration from a jury, ex-prosecutors said.

The U.S. had little reason to offer the group leniency in exchange for testimony against others, since Madoff and his top aides had already pleaded guilty, said Philip Hilder, a former federal prosecutor in Houston who represents defendants accused of white-collar crimes.

“Its kind of like an airline that only has a couple seats remaining on a flight,” said Hilder, who ran the U.S. Justice Department’s organized crime strike force in Houston in the late 1980’s.  “There’s no reason to give a discount.  They charge a full fare.  That principle applies here, too.”

Opening statements begin after U.S. District Judge Laura Taylor Swain in Manhattan completes jury selection that started a week ago.  Twelve jurors and six alternates will hear what may become the fullest account of how Madoff carried out the biggest Ponzi scheme in U.S. History.

The former employees, all of whom have pleaded not guilty, are Annette Bongiorno, Madoff’s personal secretary, who worked with him for 40 years and helped recruit investors; Joann Crupi, a manager of large accounts at Madoff’s investment firm; Daniel Bonventre, operations chief; and computer programmers Jerome O’Hara and George Perez.

The five stand out for opting to challenge the strength of the government’s evidence after prosecutors secured guilty pleas from their bosses, an uncommon strategy in white-collar cases.

Three of the five were offered plea agreements that were turned down, and two had talks with prosecutors that failed to lead to formal offers, according to two people familiar with the matter who asked not to be identified  because they weren’t authorized to discuss the negotiations.

Madoff, 75, admitted to federal agents in December 2008 that his company was a sham.  He pleaded guilty to 11 counts and was sentenced to 150 years in prison.

The U.S. in 2009 won a guilty plea from Frank DiPascali, Madoff’s finance chief, who agreed to assist with the criminal case and is to testify.  David Friehling, an accountant  for Madoff, pleaded guilty to helping prepare phony tax returns and is cooperating with prosecutors.

Federal authorities also obtained guilty pleas from Peter Madoff, who helped his brother run the firm for four decades, and employees Craig Kugel, David Kugel, Enrica Cotellessa-Pitz, Irwin Lipkin and Eric Lipkin.

SOURCE:  daileyreportonline.com, “Ex-Madoff workers chose jury trial over plea deal,” Erik Larson, October 1, 2013.