How do Ponzi scheme's work?
Bernard Madoff's / multibillion-dollar / Ponzi scheme -
http://freefrombroke.com/ponzi-sheme-simple-terms/
http://www.sec.gov/answers/ponzi.htm
http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm
http://www.investinganswers.com/financial-dictionary/stock-market/ponzi-scheme-710
DiPascali became the star witness in the trial of five former Madoff employees, testifying that they took part in creating fake records to hide the fact that no trading was occurring in customer accounts.
While DiPascali acknowledged knowing those efforts were illegal, he said Madoff convinced him that he had money elsewhere.
"I understood the entire fraud to be something other than it was," DiPascali testified.
Lawyers for the employees - former back office director Daniel Bonventre, portfolio managers JoAnn Crupi and Annette Bongiorno and computer programmers Jerome O'Hara and George Perez - countered that DiPascali was a liar.
A jury in March 2014 found the five guilty on all counts, including securities fraud and conspiracy.
A federal judge earlier this year imposed prison sentences of 10 years for Bonventre, six years for Bongiorno and Crupi and 2-1/2 for O'Hara and Perez.
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