The Computer Madoff Used To Make Off With Millions

Bernie Madoff (Simulated)

An ancient IBM AS/400 was cru­cial to US invest­ment swindler Bernard Madoff’s cun­ning Ponzi scam whereby he made off with huge wodges of other people’s cash.

Accord­ing to a new book, “Too Good to Be True: The Rise and Fall of Bernie Mad­off”, author Erin Arved­lund claims that Mad­off could not have man­aged his elab­o­rate fraud with­out his old clunker of a mid-range com­puter system.

The IBM AS/400 was used by him and select other employ­ees to print out fake account state­ments. What they would do was punch in fake trades on the IBM AS/400 and enter share prices that would square with his con­sis­tent but imag­i­nary returns on the bil­lions that cus­tomers entrusted to his firm.

Cen­tral to the scam was that “no one touched” the com­puter but Mad­off. But that would have been a safe bet as no one would want to get their paws on an ancient AS/400 unless they were a real enthusiast.

via » The Com­puter Mad­off Used To Make Off With Mil­lions Dvo­rak Uncen­sored: Gen­eral inter­est obser­va­tions and true web-log..