Ex-Madoff employees arrested

Two former employees of Bernard Madoff have been arrested and charged with securities fraud in connection with Madoff’s Ponzi scheme to defraud investors of billions of dollars. Law professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroads,” says a massive fraud like this cannot be done without help.

“Helpers should know that they become part of a fraudulent scheme even if they do not know all the details.

“Their remuneration, for example, may give signals that what is going on is not entirely legal — in this case, suspicious enough to raise liability as helpers.

“But helpers must be involved in the scheme. The cleaners of an office in which fraud is committed are not criminally liable.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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