Two associates of Bernard Madoff have been arrested and charged with crimes related to their involvement in the disgraced money manager's scheme to bilk investors out of billions of dollars.

Annette Bongiorno and Joann "Jodi" Crupi, both long-term employees at Bernard L. Madoff Investment Securities, were arrested Thursday and charged with multiple counts of conspiracy, securities fraud, falsifying documents and tax evasion, the office of the U.S. Attorney General for the Southern District of New York said in a statement.

Bongiorno, 62, who was arrested at her home in Boca Raton, Fla., managed hundreds of account for Madoff with a value of about $8.5 billion in November 2008, shortly before Madoff's Ponzi scheme began to unwind. She had worked for Madoff since 1968. Crupi, 49, who began working at Madoff's investment advisory firm in 1983, accepted clients' funds. She was arrested at her Westfield, N.J., home.

"Real Money in Their Own Pockets"

"Bernard Madoff perpetrated the largest financial fraud in history, but as we allege again today, others criminally assisted his epic crime," said U.S. Attorney Preet Bharara in the statement. "Year after year, [Bongiorno and Crupi] protected and perpetuated the Madoff mirage, while putting very real money in their own pockets," he said.

The indictments allege that Bongiorno deposited only $920,000 into her Madoff account between 1975 and 2008, but withdrew more than $14 million. Further, in addition to her salary, Bongiorno received more than $325,000 in off-the-books income.

In 2008, Crupi was paid more than $2.7 million from Madoff directly out of the firm's bank account that held investor funds. She also received more than $270,000 in income that wasn't recorded, according to the indictment.

Thursday's arrests bring to eight the number of people charged with fraud as part of the Madoff case. Bongiorno is to appear in federal court in West Palm Beach, Fla., this afternoon. Crupi will be arraigned later today in Manhattan federal court.

If found guilty, the women face maximum prison sentences of 65 to 75 years.

Roland Riopelle, a lawyer for Bongiorno, told The Wall Street Journal that prosecutors had indicated for about a year they would file criminal charges against his client, but he hadn't yet seen the details. "She intends to defend herself in connection with the charges," Riopelle said.

A lawyer for Crupi wasn't immediately available for comment, but previously said Crupi had no knowledge of the fraud.

Madoff, 72, pleaded guilty last year to fraud and is serving a 150-year prison sentence for using money from new investors to pay off old ones in a global scheme that started in the early 1990s.

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Waiting for the big oone, Shana Madoff and hubby Eric Swanson - but that would destroy the SEC insider racket

November 19 2010 at 2:16 PM Report abuse rate up rate down Reply

Bernie "makeoff with the loot" Madoff knew no-one was watching , so he did what all theives do, just at a far greater level. His family all knew , and of course his employees , down to the janitors sweeping dollar bills off the floor! Now Bernies in a federal "country club " prison, being asked for autographs from his fellow inmates. Maybe he can start investing for those dubious individuals , and when those portfolios collapse, they'll offer their SHANKS ( i mean thanks ), do you think he'd be smirking then ???????

November 19 2010 at 8:16 AM Report abuse rate up rate down Reply

why is it that gov man can get away with the same game, and there are no arrests

November 19 2010 at 5:52 AM Report abuse +1 rate up rate down Reply
Hi Beachcut

MADOFf is one of the largest lowlife thiefs in history. How in the world did his wife,son and brother not get arresed and put in prison for life? Where is all that money they never recovered? I bet it is in Israel.What kind of oversight do they have on wall street that this ponsi sheme could of lasted this long?There is no dought that many people today will never trust any of these shisters anymore!

November 19 2010 at 2:07 AM Report abuse rate up rate down Reply

It's about time..anyone who has been following this case could not help but conclude they were involved

November 19 2010 at 1:30 AM Report abuse +3 rate up rate down Reply

Glad to hear more crooks are being arrested, What about all the Bankers and People on Wall Street? Those for causeing this mess with the Housing chrisis.

November 19 2010 at 1:27 AM Report abuse +4 rate up rate down Reply


November 19 2010 at 1:22 AM Report abuse rate up rate down Reply

I have always suspected that Madoff could not have been able to pull off his scheme all by himself. I wouldn't be surprised if we learn someday that, even the data entry people knew about the scheme.

November 19 2010 at 1:12 AM Report abuse +5 rate up rate down Reply
1 reply to kellnerc7's comment

Probably Not, They just do the numbers, not what is making them up.

November 19 2010 at 1:29 AM Report abuse -2 rate up rate down Reply

Give me a break, the government has let Mrs. Madoff and her sons off in exchange for information from Mr. Madoff. So they go after these two underlings. That family and his brother were all deeply involved in the scheme. Mrs. Madoff was allowed to keep her posh apartment and over a million dollars. How is that fair? She should have had to lose her life style and live like the rest of us.But of course she is better than the rest of us (lol). How she can look her neighbors in the eyes is a wonder. I think the family has Swiss back accounts. What scum bags the whole family is. Just wish Madoff had been caught earlier, so he would have had more time in jail.

November 19 2010 at 1:05 AM Report abuse +4 rate up rate down Reply

i'M STILL IN SHOCK THAT Bristal Palin passed Max and Brandy. I still think if all the scores were added together that Palin scores would scrape the bottom. This was all reflected in Dericks face. I've dropped American Idol when Rubin beat Clay Akins. I used to watch American Idol until Rubin beat Clay Akins I dropped Americas got talent when some hill billy farm boy with missing teeth was the winner of that show. The magnificent opera singer didn't win. How about the little girl who sang magnificently and she didn't win. I'm convinced these shows are popularity contests. Now I don't trust that dancing with the stars show. There is no way the more talented Brandy and Max were eliminated in place of getting rid of Palin. Another tv show will be dropped by me. I'm really discusted about all this nonsense. The numbers should be added up and the numbers will show how poorly Palin was rated every week. I suppose I won't be watching dancing w/t stars. I still think the true talents should be chosen by the judges. The judges should have the final say.Is there no truth to reality. Dericks face shows the publics shock.

November 19 2010 at 12:25 AM Report abuse -3 rate up rate down Reply
1 reply to nasus411's comment

Brandy does not have a large fan base. Personally I find her abrasive and at the beginning of the competition she was that way with Max. Brandy and Jennifer have dance experience, so is that fair. Brandy's career was in the dumps and she has benefitted by being on the show. I don't think it will rekindle her so called career though.

November 19 2010 at 1:17 AM Report abuse -2 rate up rate down Reply