The SEC did not do their job to the full extent. Though they found money trails that led back to Madoff, they focused their attentions on the other two illegal accountants in 1992, Frank Avellino and Michael Bienes. The government made them pay back $441 million back to these firms and shut down their company, though they incurred billions. Even after this information was found out the two illegal accountants were still receiving money through kickbacks and bonuses. Madoff still went on in business and amassed more wealth. Later the SEC was accused of receiving funds illegally to cover Madoff. 2. What ultimately went wrong in the Madoff Ponzi scheme?
Madoff was making large sums of money. Even when the market shut down in 2008, he was still profiting by 1% nearly every month. He is not hurt at all, even with the fallen market. 3. Who, ultimately, was responsible for the Madoff scandal?
Frank Casey and his colleague Harry Markopolos were the first to investigate Madoff concluding that the SEC was being paid to look the other way, mostly Mr. Markopolis. The SEC were very evasive when they were questioned. 4. What were the government’s responsibilities in this situation? It was the government's responsibility to investigate and regulate all corporations. If this would have been done ethically Madoff's scheme would have been shut down. They were being paid to look they other way. 5. What are the government’s responsibilities to prevent similar issues in the future? Regulate all co operations with a more watchful eye. Enforce stricter policies to insure things like this do not occur. Investigate companies when red flags arise. Examine monthly statements to make sure no money is being funneled into unofficial or illegal accounts. Create more rules to assure that these holes can not be entered again.