Cited: "Scam of the Century: Bernie Madoff & The $50 Billion Heist." CNBC.com. Cnbc, n.d. Web. 27 Jan. 2013.
Cited: "Scam of the Century: Bernie Madoff & The $50 Billion Heist." CNBC.com. Cnbc, n.d. Web. 27 Jan. 2013.
The Bernard Madoff “Ponzi Scheme” scandal was the biggest and lasted the longest financial fraud in the history of the US. Bernard Madoff was a financial adviser, and also the former chairman of the NADAQ. He established his investment firm named “Bernard L. Madoff Investment Securities LLC” in 1960. The Madoff Fraud is a typical “Ponzi Scheme”, in order to attract investors to give money to him, he convinced people to hand over their life saving, and promised them high returns rate, and then he used these money to make payments to those earlier investors. He took the investors for a $65 billion over the course of nearly two decades. In the end, Bernard was sentenced to maximum 150 years prison life and a forfeiture of $170 billion.…
In the case of Bernard Madoff, an overview was provided that describes the fraud of the century. As a result of the Ponzi scheme, social attitudes toward the investment industry were lukewarm. I will describe the highlights of the case.…
with securities fraud. One of the reasons why Madoff's scheme did so well is the fact you had to be…
Bernard L. Madoff (Bernie) is still making news headlines. He is currently incarcerated for numerous illegal and unethical behaviors. I am going to: Describe three types of illegal business behavior alleged against Bernie and explain how the behavior is illegal or unethical. Name three types of parties who were impacted by the actions of Bernie and how. Describe three business safeguards that may have prevented the harm caused by Bernie. Describe three ways investors might have better protected themselves from risk. Describe three legal actions that possibly may be brought against Bernie under criminal or civil law. And provide an analysis…
5. Do you think Madoff acted alone, or did he have help from employees and/or family members? I do not think that he acted alone which could be a possible reason for one of his son’s suicide. The family maintains their innocence, but I have serious doubts. It is an employee’s ethical duty to be informed of her surroundings and ask appropriate questions.…
The organizational leadership of Bernard L Madoff Investments Securities LLC was held by Bernie Madoff himself. Madoff’s charismatic leadership style included seducing friends, those in secluded groups, and even his own employees. Madoff seduced his clients by making them to believe they were investing in something special, he would often turn people away, which helped Bernie in courting people and charities with more assets to offer. Madoff started his investment advisory firm by inviting Jewish people, many of whom belonged to exclusive country clubs as well as Jewish charities to buy in. These people would then become networkers for Madoff, by allowing other investors to buy in to the Ponzi Scheme Bernie was running.…
Bernie Madoff did not work alone. One reason is because a scheme of this magnitude would have been difficult for one man, even one as smart as Madoff, to pull off alone. Because of his long career and the amounts being traded at the end of 2009, the probable answer is that some people involved with Madoff were knowingly skirting financial rules and procedures. Some should be made aware of the legal fuzziness that exists within the financial sector. Such fuzziness has, in part, been deliberately created either by rule omissions or by tactics that circumvent such rules. The SEC cannot hold individuals criminally liable for breaking SEC rules. The SEC can fine companies and ostracize people and firms from publicly trading on financial exchanges, but that is all.…
Bernie Madoff had his investors believe that they were making a lot of money through his investment firm (Bernard Madoff Securities), by creating false trade reports. His firm used a computer program that his employees used to backdate trades and manipulate account statements by entering in a false closing trade in the amount of the required profit for each of his customers. He also set up his portfolios…
Bernard Madoff is a modern day Visigoth for several reasons. He is one of the largest white collar criminals of all time. In fact, he has committed one of the most elaborate Ponzi schemes, which is considered to be the largest financial fraud in history. For those who do not know what a Ponzi scheme is – it is a fraudulent investment that pays returns to its investors from their own money, or the money of other investors, rather than through profits of the organization. The scheme entices investors with large amounts of returns or unusually consistent ones. In order to keep the operation running, new investors must contribute to the cash flow. If the scheme is not interrupted by the authorities, it is likely to fall part for reasons such as the promoter vanishing, the insufficient amount of new investors, or external market factors (such as a decline in the economy). Furthermore, Madoff is a former non-executive chairman of the NASDAQ stock market. Madoff is considered to be a Visigoth for his monumental greed of money, poisonous lust for control, and blunt disregard for the well-being of others.…
Madoff was providing his clients with monthly investment statements and trade transactions that never occurred. He used new client’s funds to pay profits to existing clients. Which is typical in Ponzi schemes.…
One of the most well known schemer and criminal of the white collar field was Bernie Madoff. The chameleon created an impression of being a nice and caring person at work, but ironically, deep down inside he was a deranged money hungry criminal. Many people could not believe the news they were hearing after he had confessed to the crimes he committed because he was really good at hiding the true person he was. He was a master at impression management. Quoted from Diana Goldberg “He was a hero to us, the head of NASDAQ. We were proud of everything he had accomplished”. They believed in him, he gained everyone’s trust by manipulating…
One of the reasons Madoff was able to perpetrate his fraud for so long was his preference for marketing his investment business by word of mouth. Until the scam's later years, people heard about it from friends. It was a private club, one that, famously, became only more desirable because of Madoff's seeming reluctance to admit new investors. One of the tacit conditions, as we know now, was an understanding that information about Madoff investments -- including their existence was to be held closely. Most…
This paper will discuss the matters of Bernard “Bernie” Madoff. Are his actions to be deemed unethical, immoral, or both immoral and unethical? Madoff plead guilty to conducting his $65 billion Ponzi scheme. This in turn led him to be charged with several counts of money laundering amongst other things. His world came crumbling down around him the day after the company’s Christmas party in December of 2008.…
In court, he stated that he began by promising strong returns even though the stock market was not doing very well and the country was in a recession during the 90’s. Bernard L. Madoff Investment Securities LLC was his firm that was used to con thousands of people out of their money, some of the funds provided by his customers were, life savings or retirement funds. Madoff was not shy to admit that he knew the day…
Bernie Madoff was a thief, plain and simple. He was a greedy, selfish, self-indulgent con artist, no different from any other grifter that you meet, except because of who he was, he was able to pull the con off on a grander scale. Madoff used his name and position and the legitimacy of his first business to draw people into his Ponzi scheme (like a pyramid scheme where one takes money from newer clients to pay older clients). He misrepresented (the kinder word) or lied (if you want the truthful description) to his friends and clients from the beginning and as later documented in his allocution, he never invested any of the money he got. It would have been different if this scheme formed from some bad business decisions and he did this in response to that and was trying to save some of his client’s money, but it wasn’t. Madoff originally provided his clients the 10-12% returns on investment that he offered, but it appears that with the increase in funds, the persons that benefitted the most from the Ponzi scheme was Madoff and his family. They all shared in an expensive and lavish lifestyle bordering on the garish with its excesses. He appeared to hire incompetent people so no one would be the wiser to what he was doing which was a disservice to his clientele. He also appeared to have used some of his misbegotten gains and infused them into his legitimate business therefore, putting it at risk. Nepotism was rampant in Madoff’s business which is why many people believe his family had to be involved more than just the sons and the confession of the scheme.…