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…
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.…
The Bernie Madoff Ponzi scheme was life altering for numerous individuals who trusted in Madoff with their life savings and hard-earned wealth. Although the original scandal made headline news over eight years ago lawsuits and other remnants still remain. In 2013, one of largest organizations that people believe contributed the J.P. Morgan (JPM) agreed to settlement with a onetime payment of $billion dollars (J.P. Morgan Chase Will Have To Pay A Fine, 2013). Although many believe that JPM was the blame for not breaking the news of the Ponzi scheme sooner due to obvious red flags related the Madoff laundering money in and out of accounts held at the bank, JPM has still taking the stance that they were not to blame. Furthermore, in 2015, another…
Bernie Madoff held numerous high profile positions in the stock market community. I would even go as far as to label him as the master of networking. After graduating from Hofstra College, he marries his high school sweetheart, and proceeds to work for his father-in-law’s accounting firm as an investment advisor (Gaviria, Smith, & McCoy, 2009). As Madoff’s trading business grows over the next several years, he joins multiple committees as he begins to fight for regulatory changes in order to make trades easier and more convenient, not to mention he had been in business for decades. This gives Bernie Madoff the persona that he is educated, responsible, and respectable; which leads his to be trusted by many investors. (Ferrell, Fraedrich, &…
It wasn’t done alone. Madoff had help from colleagues and it is even suspected that some of his family members were involved due to the fact that he brought in a lot of family members to the job over the years including his sons. His sons were actually the ones who reported him to federal authorities. Some people who were involved were Frank Avellino, Frank DiPascali, and Jeffery Picower. In order for the prosecutors to bring Madoff to court, they had to go through a series of junior employees and squeeze as much information from them to have enough supporting details and evidence to move up on the table. “Madoff had dealings with a variety of banks and hedge funds, and burned Madoff investors have tried to recoup funds from some of them. Madoff held an account at JPMorgan Chase that he used to shuffle money between offices in London and New York. In 2011, two Madoff investors sued the bank for $19 million, claiming they aided in his fraud, according to CNN. At the time, a JPMorgan spokesman dismissed the lawsuit as meritless.”…
Bernard Lawrence Madoff, a former chairman of the NASDAQ Stock Market and founder of Bernard L. Madoff Investment Securities, was one of the few NASDAQ market-makers who competed with the New York Stock Exchange, by trading stocks listed on the Big Board. Through the Cincinnati exchange, the Madoff was a pioneer in electronic trading and publicly spoke of the need to use technology to transform the inefficient and sometimes shady over-the-counter stock market (Monica Gagnier, 2008). But Madoff became famous for a very different reason on December 10, 2008 when Madoff 's sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, including securities fraud, wire fraud, mail fraud, money laundering, making false statements, perjury, theft from an employee benefit plan, and making false filings with the SEC.…
The hedge fund worked by taking money from investor’s not just big fat-cat billionaires and celebrities but also humbled investors, banks and even charities. Unfortunately they all lost money in this investment. In a fund that is ran to regulation a trader would take the funds intended for investment and play them in the market after research is performed in the hope for a gain on return. But what Mr. Madoff did was, he took the money held on to it. And never put it into the market. He would take money from new investors and pay off dividends form old investments. He would pay high profile clients up to 46% on return. Not only were is phony numbers attractive but Mr. Madoff was a charming man who people look up to like a super hero for little kids. One potential investor said that he had reached out to Madoff in hope that he could invest with his firm but was turned down after Madoff said he would only deal with individuals who had 20 million or more to invest with. He also went on to say that his friends called him a fool for waiting so long to get in touch with this financial god and now they are the…
Former Nasdaq Stock Market chairman, Bernard L. Madoff was arrested back in 2008 for conducting the largest Ponzi scheme in history. He was…
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).…
By 2008, Bernie Madoff had grown Bernard L. Madoff Investment Securities to 200 employees and commanded tremendous respect on Wall Street (Gregoriou & Lhabitant, 2009, p. 90). His lines of business included market making, proprietary trading, and investment advisory services. Madoff used the investment advisory services sector to perpetrate his Ponzi scheme. More than $750 million dollars of stolen funds were transferred to the market making and proprietary trading operations, keeping those portions of the business afloat. Madoff needed to support these failing portions of the business to maintain the appearance of a legitimate business operation (Lewis, 2013, pp. 283-284). Madoff was a legend in the investment community, and he generated…
Bernard Madoff is a former stock broker, investment advisor, etc. He pleaded guilty in March 2009 to 11 felonies and admits that he turned his wealthy management business into a massive ponzi scheme that defrauded thousand of wealthy investors out of billions of dollars. He began this scheme in the early 1990’s. The funds missing from the investors accounts include gains totaling almost $65 billion that was fabricated by Madoff. Madoff reached an agreement on February 2009 with the SEC, banning him from the Securities industry for life.…
Bernie Madoff was a successful businessman, who built his business with an investment of five thousand dollars and ran his business using Ponzi schemes. His Ponzi schemes are what made him acquire so many investors and make billions. As crooked and illegal as Bernie Madoff's actions might've been he found a way to still strike as an iconic and incredibly successful business man. Bernie Madoff made it seem like if you didn't have a connection to him then your name was unheard of. The only way you were able to be let into his "community" was by having special connections. He created this need of acceptance by having a high confidence level and strong communication skills to make people buy into his hype. His motivation was off of the pure greed of the green papers of North America; money. His…
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 had got helped from his father-in-law, a C.P.A. retiree, with his company. Bernie business had attracted investors through word-of-mouth and he had an impressive client list that included the rich, not so rich and the famous. With an annual return of 10 percent or…