Paul
Konigsberg, the accountant for many of Bernard Madoff’s oldest and wealthiest
clients, was yesterday charged by the Securities and Exchange Commission for his role in the creation of false books and records used in the
Ponzi scheme.

Konigsberg provided tax or
accounting services for some 200 Bernard Madoff Investment Securities client accounts, including five of
Madoff’s wealthiest and oldest clients who, combined, invested more than $1 billion in BMIS.

The SEC alleges that Konigsberg’s
actions resulted in inaccurate monthly trade confirmations in addition to the development
of “phony data” and records documenting the trades.

In a parallel action, the US Attorney’s Office for the
Southern District of New York yesterday announced criminal charges against Konigsberg.

According to the SEC’s complaint - filed in US District
Court for the Southern District of New York - Konigsberg “aided and abetted”
the falsification of books and records at BMIS from at least the mid-1990s to
late 2008. 

Konigsberg received fees
directly from BMIS clients for the accounting services that he provided them. The
SEC said that BMIS and Madoff paid Konigsberg a monthly fee of $15,000, or $20,000 as a
“retainer,” for providing accounting services to a “wealthy and longtime” Madoff
client and his adult children.

The SEC’s complaint seeks disgorgement of ill-gotten gains,
financial penalties and permanent injunctions against Konigsberg.
The investigation continues.

“Konigsberg played a vital
role in Madoff’s deception of his oldest and wealthiest clients over many
years,” said Andrew Calamari, director of the SEC’s New York Regional
Office. “Konigsberg’s
acquiescence, cooperation, and collaboration were essential to the Madoff
fraud,” Calamari said.