Comments on: Bernie Madoff: how low tech helped him get away with his Ponzi Scheme http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme Tech, Media and other interesting stuff Fri, 23 Jul 2010 10:16:55 +0000 hourly 1 http://wordpress.org/?v=3.0 By: ralphdaugherty http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme/comment-page-1#comment-577 ralphdaugherty Mon, 14 Dec 2009 05:11:13 +0000 http://dodgeretort.com/?p=1127#comment-577 or anything since. yes, John, I read the FBI doc when it came out and it had nothing beyond what you reported. Just wanted to emphasize that a 1993 AS/400 is obviously an aging computer, but the AS/400 isn't. A new model comes out every year or two (and IBM keeps changing the name, iseries, i, etc.) It runs many multi-billion dollar companies and can do anything online, real-time desired. Only House 17 was low tech in the sense of being kept offline and used only for printing bogus statements. A 1993 AS/400 still running and generating tens of thousands of statements would be quite remarkable. But the ROI of the AS/400 is so legendary it's believable. Ralph or anything since. yes, John, I read the FBI doc when it came out and it had nothing beyond what you reported. Just wanted to emphasize that a 1993 AS/400 is obviously an aging computer, but the AS/400 isn’t. A new model comes out every year or two (and IBM keeps changing the name, iseries, i, etc.) It runs many multi-billion dollar companies and can do anything online, real-time desired. Only House 17 was low tech in the sense of being kept offline and used only for printing bogus statements.

A 1993 AS/400 still running and generating tens of thousands of statements would be quite remarkable. But the ROI of the AS/400 is so legendary it’s believable.

Ralph

]]> By: John http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme/comment-page-1#comment-562 John Fri, 27 Nov 2009 00:17:47 +0000 http://dodgeretort.com/?p=1127#comment-562 I milked every document I could get my hands on and extensively interviewed two BLMIS IT guys...nothing about upgrades. Not sure investigators care as long as they can get to the information they get to bring as many to justice as possible. Particulars on which model etc. were not available to me when I was reporting the story. The FBI doc you mention became public two weeks after my story broke. My story took the Madoff's tech much. much further than anything previously. I milked every document I could get my hands on and extensively interviewed two BLMIS IT guys…nothing about upgrades. Not sure investigators care as long as they can get to the information they get to bring as many to justice as possible. Particulars on which model etc. were not available to me when I was reporting the story. The FBI doc you mention became public two weeks after my story broke. My story took the Madoff’s tech much. much further than anything previously.

]]> By: John http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme/comment-page-1#comment-561 John Fri, 27 Nov 2009 00:12:21 +0000 http://dodgeretort.com/?p=1127#comment-561 More arrests to follow, I'm sure....following the arrests of AS/400 programmers Jerry O'Hara and George Perez. When I started out reporting my piece, those were the two I wanted to talk to most. Couldn't locate them, but I am sure they would not talk to me. Here's my follow-up story in which SEC investigator told me they are cooperating w authorities.. http://www.securitiesindustry.com/issues/21_21/-24259-1.html More arrests to follow, I’m sure….following the arrests of AS/400 programmers Jerry O’Hara and George Perez. When I started out reporting my piece, those were the two I wanted to talk to most. Couldn’t locate them, but I am sure they would not talk to me. Here’s my follow-up story in which SEC investigator told me they are cooperating w authorities..

http://www.securitiesindustry.com/issues/21_21/-24259-1.html

]]> By: michael webster http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme/comment-page-1#comment-560 michael webster Thu, 26 Nov 2009 14:25:34 +0000 http://dodgeretort.com/?p=1127#comment-560 Liked the report, and it is good summary of the Looby affidavit. Looby also notes: "Of its thousands of customers, BLMIS provided customer statements in electronic form to only two customers, with six accounts between them. Even though they were electronic, the statements consisted of merely data files. No customer had real time access to its account information and trading data because there was no such data or information to be had in light of the fact that no trading was conducted." You cannot tell me that everyone thought that this was ok. Liked the report, and it is good summary of the Looby affidavit.

Looby also notes:

“Of its thousands of customers, BLMIS provided customer statements in electronic form to only two customers, with six accounts between them.

Even though they were electronic, the statements consisted of merely data files.

No customer had real time access to its account information and trading data because there was no such data or information to be had in light of the fact that no trading was conducted.”

You cannot tell me that everyone thought that this was ok.

]]> By: ralphdaugherty http://dodgeretort.com/general/bernie-madoff-how-low-tech-helped-him-get-away-with-his-ponzi-scheme/comment-page-1#comment-557 ralphdaugherty Mon, 23 Nov 2009 01:49:17 +0000 http://dodgeretort.com/?p=1127#comment-557 Hi John, I thought your investigative piece was well done. I posted my thoughts on it on my Madoff thread: http://www.rdwrites.com/forums/viewtopic.php?t=3875&start=135 I know the AS/400 programmers were hired in 1993, but is your statement that House 17 was the original AS/400 installed in 1993 based on more than that? You have info that no upgrades to newer models were done since 1993? Surely the House 5 AS/400 doing the FTP communications with exchanges was newer? Did anyone ever mention an actual model number, OS release number, or anything to indicate it as still the original 1993 AS/400? I found the technical analysis by the FBI in the arrest warrant to be particularly well done. regards, Ralph Hi John, I thought your investigative piece was well done. I posted my thoughts on it on my Madoff thread: http://www.rdwrites.com/forums/viewtopic.php?t=3875&start=135

I know the AS/400 programmers were hired in 1993, but is your statement that House 17 was the original AS/400 installed in 1993 based on more than that? You have info that no upgrades to newer models were done since 1993?

Surely the House 5 AS/400 doing the FTP communications with exchanges was newer? Did anyone ever mention an actual model number, OS release number, or anything to indicate it as still the original 1993 AS/400?

I found the technical analysis by the FBI in the arrest warrant to be particularly well done.

regards,
Ralph

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