Bernard Madoff
Bernard Madoff
Ethics Case
Bernard Madoff is a former stock broker, investment advisor, etc. He pleaded guilty in March 2009 to 11 felonies and admits that he turned his wealthy management business into a massive ponzi scheme that defrauded thousand of wealthy investors out of billions of dollars. He began this scheme in the early 1990’s. The funds missing from the investors accounts include gains totaling almost $65 billion that was fabricated by Madoff. Madoff reached an agreement on February 2009 with the SEC, banning him from the Securities industry for life. In 1960 Bernard Madoff was the founder of the small Wall Street firm Bernard L. Madoff Investment Securities LLC. The firm started as a penny stock trader with $ 5000 …show more content…
But Judge Denny Chin revoked Madoff’s bail and put him in the Metropolitan Correctional center. Judge Chin said Madoff was a flight risk. At that time prosecutors filed two asset forfeiture pleadings which included lists of valuable real and personal properties and as well as financial interests and entities. Madoff’s lawyer appeal, but a appellate court denied Madoff’s request to be released from jail. On June 26, 2009, Judge Chin made Madoff give up $170 billion in asset. Ruth Madoff also agreed to give up her claim to &85 million in assets, leaving her with $2.5 million in cash. This allowed the SEC and trustee Irving Picard to pursue Ruth Madoff’s funds as well. Ruth was accused of withdrawing $15 million from the company related accounts right before Bernie Madoff confessed. Chin sentenced Madoff on June 29, 2009 to the maximum sentence of 150 years in federal prison; it is equal to a life …show more content…
Most of the investors never heard of Madoff until his arrest. This was because there were seven smaller so-called “feeder fund” channeling these fund to the main fund; meaning a great number of investors did not know that their money was being managed by Madoff himself. Schemes like this can only continue to work as long as there are new investors willing to invest. As the money Madoff invested started producing poor returns and as there were fewer new investors the returns to the investor diminished. When European investors began to withdraw big amounts in the second half of 2008, Madoff knew he was in trouble. Shortly after that Madoff was arrested, convicted and sentenced to federal
Ethics Case
Bernard Madoff is a former stock broker, investment advisor, etc. He pleaded guilty in March 2009 to 11 felonies and admits that he turned his wealthy management business into a massive ponzi scheme that defrauded thousand of wealthy investors out of billions of dollars. He began this scheme in the early 1990’s. The funds missing from the investors accounts include gains totaling almost $65 billion that was fabricated by Madoff. Madoff reached an agreement on February 2009 with the SEC, banning him from the Securities industry for life. In 1960 Bernard Madoff was the founder of the small Wall Street firm Bernard L. Madoff Investment Securities LLC. The firm started as a penny stock trader with $ 5000 …show more content…
But Judge Denny Chin revoked Madoff’s bail and put him in the Metropolitan Correctional center. Judge Chin said Madoff was a flight risk. At that time prosecutors filed two asset forfeiture pleadings which included lists of valuable real and personal properties and as well as financial interests and entities. Madoff’s lawyer appeal, but a appellate court denied Madoff’s request to be released from jail. On June 26, 2009, Judge Chin made Madoff give up $170 billion in asset. Ruth Madoff also agreed to give up her claim to &85 million in assets, leaving her with $2.5 million in cash. This allowed the SEC and trustee Irving Picard to pursue Ruth Madoff’s funds as well. Ruth was accused of withdrawing $15 million from the company related accounts right before Bernie Madoff confessed. Chin sentenced Madoff on June 29, 2009 to the maximum sentence of 150 years in federal prison; it is equal to a life …show more content…
Most of the investors never heard of Madoff until his arrest. This was because there were seven smaller so-called “feeder fund” channeling these fund to the main fund; meaning a great number of investors did not know that their money was being managed by Madoff himself. Schemes like this can only continue to work as long as there are new investors willing to invest. As the money Madoff invested started producing poor returns and as there were fewer new investors the returns to the investor diminished. When European investors began to withdraw big amounts in the second half of 2008, Madoff knew he was in trouble. Shortly after that Madoff was arrested, convicted and sentenced to federal