The Fraud of the Century
The Case of Bernard Madoff
Summary of the case
In December 2008, the highly respected American businessman Bernard Madoff made the headlines when the US authorities accused him of orchestrating a $65 billions Ponzi scheme which is the biggest financial frauds of all time and made of him “ The Conman of the Century”. Bernard Madoff also called "Bernie" is a former American businessman, stockbroker, investment advisor, financier and the former non-executive chairman of the NASDAQ stock market and held a seat on the government advisory board on stock market regulation. During all his long successful financial career B.Madoff has been considered as a trustworthy, well respected and responsible man. Bernie epitomized the American dream indeed he started a legal investment business in 1960 at the age of 22 years old and became increasingly rich and successful over the years with its company named Madoff investment securities LLC. Through the years he developed respectability, high visibility and promised to its clients consistent returns of 10 to 12%. In the early of 1990’s Madoff began its Ponzi scheme and used its large financial portfolio to attract billions of dollars from hundreds of investors, among them there were international bank, pension fund, charity organizations, US school… The Bernard Madoff’s fraud held out around 20 years, during all these years hundreds of investors trusted him and financial institutions as the Securities Exchange Commission which investigated several times its company reported anything. In 2008, when his Ponzi scheme is on the verge to explode due to the economical downturn and the lack of new investors, B.Madoff confessed to its sons his financial criminal fraud and was reported by its sons to the police. In March 12 2009, B.Madoff pleads guilty to 11 counts of fraud and admitted to turning his wealth management business into a massive Ponzi scheme that defrauded thousands of investors...
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