What Is The Bernie Madoff Scandal
University of Missouri – Columbia
The Bernie Madoff Scandal
Finance 2000: Survey of Business Finance
Student ID #: 12366167
December 17th, 2014 The Madoff scandal is one of more prominent scandals regarding business ethics in more recent times. The scandal was a complex Ponzi scheme ran by Bernard Madoff. A Ponzi scheme was originally named after Charles Ponzi, who would pay returns to its investors from new capital paid to the operators by new investors rather than any profit generated. Bernard Madoff ran the largest Ponzi scheme in history through his wealth management firm, Bernard L. Madoff Investment Securities LLC. The estimated amount of the fraud was about $64.8 billion based on amounts in the accounts of 4,800 clients. Madoff was sentenced to 150 years in prison with restitution of $17 billion on June …show more content…
He will end up dying in prison. Madoff was also not cooperative with investigators, which made investigations into accomplices very difficult. Madoff was basically completely silent, and stood his ground that he was the sole person behind the Ponzi scheme. Many people had lost their life savings, which they cannot recover. Madoff had received copious amounts of death threats during his sentencing, and might still be getting death threats to this day. The victims really couldn’t see this coming unless they were a very experienced person with knowledge of wealth management and wealth growth. The returns the victims were receiving were always very consistent, but going into the recession, they should have seen how there was no way they could be getting the same returns. The entire market was plummeting, yet Madoff’s victims were still receiving consistent returns, which should be a major flag to anyone with minimal knowledge. But, the idea of being lucky, and having trusted the man for so long blinded his
The Bernie Madoff Scandal
Finance 2000: Survey of Business Finance
Student ID #: 12366167
December 17th, 2014 The Madoff scandal is one of more prominent scandals regarding business ethics in more recent times. The scandal was a complex Ponzi scheme ran by Bernard Madoff. A Ponzi scheme was originally named after Charles Ponzi, who would pay returns to its investors from new capital paid to the operators by new investors rather than any profit generated. Bernard Madoff ran the largest Ponzi scheme in history through his wealth management firm, Bernard L. Madoff Investment Securities LLC. The estimated amount of the fraud was about $64.8 billion based on amounts in the accounts of 4,800 clients. Madoff was sentenced to 150 years in prison with restitution of $17 billion on June …show more content…
He will end up dying in prison. Madoff was also not cooperative with investigators, which made investigations into accomplices very difficult. Madoff was basically completely silent, and stood his ground that he was the sole person behind the Ponzi scheme. Many people had lost their life savings, which they cannot recover. Madoff had received copious amounts of death threats during his sentencing, and might still be getting death threats to this day. The victims really couldn’t see this coming unless they were a very experienced person with knowledge of wealth management and wealth growth. The returns the victims were receiving were always very consistent, but going into the recession, they should have seen how there was no way they could be getting the same returns. The entire market was plummeting, yet Madoff’s victims were still receiving consistent returns, which should be a major flag to anyone with minimal knowledge. But, the idea of being lucky, and having trusted the man for so long blinded his