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Sex and romance in Madoff offices

Sex and romance flourished in the offices of disgraced financier Bernard Madoff even if real investing did not, the US government has revealed.

It has disclosed among other revelations that even the Ponzi king himself was involved in a love triangle with a subordinate now facing trial.

But prosecutors refused to get into the details or identities of those involved in the dalliances without the blessing of a federal judge.

Five of Madoff's former employees pleaded not guilty on Friday in court in Manhattan to the latest indictment in the case. Their trial is due to start on October 7.

One defendant was in a love triangle with Madoff, and four of the five defendants were among those involved romantically or sexually, authorities said. The government said even investors got involved.

Madoff was arrested in December 2008 and later admitted to a multi-decade fraud that cost thousands of investors about 20 billion dollars (£13 billion). He is serving a 150-year prison sentence.

Though prosecutors noted the various personal relationships among Madoff employees and customers, they asked US District Judge Laura Taylor Swain to exclude evidence of them from the trial, saying it was "unduly prejudicial".

Prosecutors wrote: "Because of the inflammatory nature of this evidence, we do not catalogue it here, although the government certainly can at the court's request.

"Suffice it to say that the government's investigation has revealed that, over the course of the multi-decade fraud alleged in the indictment, a number of Madoff Securities employees and customers - including expected witnesses, defendants, and others - were engaged in romantic or sexual relationships."


From Belfast Telegraph