New developments have emerged since this case study was written. Using valid peer-reviewed sources on the Internet, update facts in this case with more current information. How do these new facts reflect changing social attitude towards the investment industry?
1. What are the ethical issues involved in the Madoff case?
2. Do you believe that Bernard Madoff worked alone, or do you think he had help in creating and sustaining his Ponzi scheme? No there is no way possible for Madoff to create and sustain his Ponzi scheme on his own. By all accounts, this scheme has been going on since sometime in the 1990’s. The S.E.C.,” he said, referring to the Securities and Exchange Commission, which muffed multiple opportunities to catch Mr. Madoff, “they played a big role in this. They have a lot to answer for.” He said that the tax code should be changed so that Madoff victims can recoup taxes they paid on profits that turned out to be illusory — no matter how far in the past those taxes were paid. He thought the Securities Investor Protection Corporation, which tries to put at least a little money in the hands of investors whose firms have gone under, should give victims more than the current $500,000 maximum.
3. Would this represent a conflict of interest?
4. What should be done to help ensure that Ponzi schemes like this one do not happen in the future? Checks and balances. There could not have been people checking the company accounts and not have thought something was not adding up. Situations like this can be easily shutdown or reported to the right authorities. References:
either a member of Bernie Maddof's family, or as one of his investment feeders, to what extent should you be held responsible for the losses of the investors? Support your opinion with moral philosophies from the reading assignment.
1. Ethically, there were many...