Summary: The Madoff Affair

Bernie Madoff is claimed to be the largest white-collar criminal in history. I knew of the scheme when he was arrested, however, I was not aware of the scope of the crime that had been committed. Furthermore, The understanding that I gained from The Madoff Affair documentary involving white collar crime is that not only business managers, VPs, and even lower level employees are able to commit this type of fraud but that the number one person in charge can run a scheme so big that it boasts billions of dollars to the extent of almost a century while managing to exploit no one but himself in the end. Some recommend that business leaders are ethically not quite the same as other individuals (Ferrell, Fraedrich and Ferrell, 2013). Business contains one variable that is not found in
A split-strike tactic is when one purchases stocks and then takes options contracts out on the investment. Furthermore, Madoff’s split-strike tactic did not offer similar returns to a passive index created to capture the returns of a Madoff-like strategy that should have alerted investors that the various feeder funds offered returns that were too good to be true (Schneeweis & Szado, 2010). Consequently, evidence of the potential issue resided in the impression of the profits yet, tragically, the profits were well covered up. Taking everything into account, I do believe that ethics in business are mostly guided by regulations and policies implemented and enforced within all organizations. However, there is still a gray area in that when someone is in Madoff’s position morals were a part of who he once was, still, the desire to continue to have an enormous nest egg and the love of wealth gained from such a scheme, as I would see it, is the thing that drove Bernie Madoff to proceed with his degenerate