A former operations chief for Bernie Madoff, on trial for aiding the epic Ponzi schemer in his historic fraud, once pulled strings to have his son put on the company payroll despite not working there, a Manhattan jury learned Monday.
Craig Kugel, a former Human Resources staffer at Madoff Securities, testified in Manhattan federal court that the son of Daniel Bonventre was handed a “no show” job so he could collect health benefits after graduating from college.
Kugel, who copped a plea in 2012 to giving salaries and benefits to people who weren’t employees, said Madoff approached him about the idea in 2007. According to Kugel, Madoff said that Bonventre had asked him how his son, Daniel Jr., could stay on the plan. Madoff then called the elder Bonventre a “key employee,” adding “we need to help him out and do something for his son,” recalled Kugel.
This is not the first time that Daniel Bonventre Jr. – who has not be charged with any wrongdoing – has been thrown under the bus by an ex-Madoff staffer seeking a better plea deal with the feds.
When copping a plea in June 2011 to falsifying records, former Madoff payroll manager Eric Lipkin also said the younger Bonventre – along with others – received salaries and benefits from the firm despite not working there. Lipkin claimed he was instructed by Bonventre to give his son the “no show” job.
The elder Bonventre is one of five former key Madoff staffers currently on trial for fraud.
Kugel’s father, David, a supervisory trader at Madoff Securities, pleaded guilty to fraud in 2011.
With Post Wires