Madoff's Case

Topics: Bernard Madoff, Securities fraud, Audit Pages: 3 (1131 words) Published: July 14, 2012
Madoff Securities Case
Choukri Alaoui
Liberty University

Madoff Case Summary
On December 11, 2008, Madoff was under arrest by federal agents and charged in a twenty years securities scheme that was the largest fraud in the history of Wall Street. On March 12, 2009, he pleaded guilty to all the federal charges filed against him counting securities fraud, money laundering and perjury. He had been one of the most valued financiers in Wall Street up to this scheme. He was nothing but another individual that had been corrupt and finished his reputation paying for his crimes (Knapp, 2013). The firm that he started in 1960 with 5000 dollars was a trading of penny stocks. The penny stocks are stocks that can be sold or purchased for pennies per share. Madoff Securities developed the NASDAQ system for the broadcasting of prices through the use of information technology. Certainly, Madoff was responsible for making some of his clients’ money. But, this money was made dishonestly with a cover from Friehling & Horowitz accounting firm (Knapp, 2013). Harry Markopolos tried vigorously to notify the SEC and the public about Madoff's behaviors, but without success. Whether dishonesty or/ and unskillfulness is the reason for the SEC's failure to detect this fraud; the fact is that the SEC has helped Madoff to continue his scheme for more than a decade (Knapp, 2013). Research recent developments involving this case and summarize these developments in a bullet format. * The suicide of Bernard Madoff's son, Mark, who took his life in 2010, would not stop his investigation. After Mark’s death, investigators indicated that they would not stop their further analysis into any part he played in this scheme (Rothfeld, 2010). * Irving Picard, a deceived investors' trustee has already sued Mark Madoff's children, claiming that Bernard Madoff illegitimately shifted funds to them (Rothfeld, 2010) * Bernard Madoff's sufferers are in the hunt to seize funds away from...
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