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.…
Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between a fraud “condition” and a “fraud risk factors,” and provide examples of each. What fraud conditions and fraud risk factors were apparently present in the Madoff case?…
In addition to The Economic Entity Assumption was a principle that continued to be violated throughout Madoffs operations. Transactions have to be recorded correctly while booking, including keeping certain transactions separated if its not related to the business. You should never mix your personal transaction with your business transactions. However, Madoff was no stranger to breaking this accounting principle. He over the years he made several transactions that would be considered unethical, because funds for business was used for personal use. accounting rule. In the article "Too Good to Be True" "Madoff began regularly wiring money to the London office to pay for personal luxuries. He purchased the $7 million Leopard Yacht in the…
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…
3. Was his punishment excessive? Will it deter other possible criminals? No, the punishment was not excessive. Madoff figuratively took the lives away from others. Therefore, him spending the rest of his life in prison is a fitting punishment.…
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…
Madoff and his investment firm was charged with securities fraud, for a multi-billion dollar Ponzi scheme. The scheme wasn't revealed until Madoff himself confessed his crimes.…
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.…
Mr. Madoff had a business installing and fixing sprinklersystems but he saved money and with only $5,000 he joined the ranks of Wall Street in the late 1960’s. With his very small firm he got his start by matching buyers of inexpensive “penny stocks” with sellers in the growing market. But in the late 1970’s his firms and those like his got the opportunity to start trading prestigious blue-chip stocks and the rest became history. He started cultivating key relationships with regulators which in turn gave him the upper hand when it came to staying under the radar of the S.E.C. When he worked hard to adopt new trading technologies in the 1990’s he became the head of NASDAQ. Mr. Madoff had an attitude of using the mantra of “kiss” when it came to his employees and wanted everything completely organized and always looking like a top notch operation. So with all of this prestigewhat happed with him to just…
The issue of whether HSBC had an adequately incredible and essential effect in revealing Bernie Madoff is very controversial. However, after very careful consideration, I believe that HSBC’s role had a sufficiently great and important impact in uncovering Bernie Madoff.…
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…
According to the NCAA website, the NCAA has over 444,000 college student athletes. There are scholarships for some athletes but not all student-athletes receive scholarships. I myself am a scholarship football player here at Kutztown University, which means I receive a partial athletic scholarship for my athletic achievements in high school. There are many athletes around the world who do not receive scholarships, and those who do are not getting paid what they should be for the talents. Universities make millions of dollars off of student athletes, so why do we not get to see the money we bring to the school.…
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.…