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Tuesday, November 12, 2013

NY ex-Madoff worker kept mouth shut as fraud grew


NEW YORK — The first ex-employee of Bernard Madoff to testify at the New York trial of five former Madoff employees says he rarely questioned his former boss as the money rolled in.

David Kugel (KOO-goal) testified over several days last week about working for Madoff since the 1970s. 

He told a Manhattan jury he created phony trades to make it seem Madoff was investing the billions of dollars he took in from thousands of clients.

Kugel was the first of a string of witnesses the government is counting on to link the fraud to Madoff's former secretary and four others on trial.

The 75-year-old Madoff is serving a 150-year prison sentence for the massive fraud. The trial resumes Tuesday.

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