The Fraud of the Century: The Case of Bernard Madoff update facts in this case with more current information. How do these new facts reflect changing social attitude towards the investment industry? Solution Bernard Madoff Case - The Fraud of the Century. In the year end of calendar year 2008, a pozi scheme was unearthed and become into public , the fraud was perpeuted by Bernard Madoff. The Ponzi terms was evolved and termed on the name of Charles Ponzi , who in the early tweenth century , it was seen that a way to profit from international reply coupons . The said international coupons were a guarantee of return postage in response to an international letter. Chrles Ponzi visualized that he could legally make money , by swapping out these coupons for more expensive postage stamps in countries where the stamps ere of higher vaues. He promised to investors 50% profit in a few years and the bubble were bursted. In the similar Ponzi scheme Mr. Madoff took the money from the new investors to pay earning for existing customers. Bernie Madoff started in the investment business by legally buying and selling stock not listed on the New York stock Exchange (NYSE), started in 1960 as a sole proprietorship he served as a whole seller between institutional investors. In early days, he made his money on the variance/spread between the offer price and sales price of stocks. his trade was zoomed in the year 1990, and his trade volume reached the 10% mark of the total trading of NASDAQ , USA. Mr Barnie was working with his brother Peter and developed superior techniques for trading , buying etc., at the best prices. Madoff did not operated any hedge fund , which charges a fee for services and hold the money at a custodial bank . in this way he become more fund backed and become successful and bold, Peter took the firms securities business. Mr Bernie became the Chairman of NASDAQ in the years 1990, 1991 and again 1993, and due to his standing he promised consistent return 10-12 % per year, and Bernie was drawing billions of dollars from hundreds of high net worth investors. In addition to he helped an government backed seat in the advisory board. Peters niece, Shana Madoff also joined in this bandwagon of prosperity as a compliance officer of this firm and she married to Eric Swanson , a former SEC compliance officer, and the girl was christened with \"Girls Scout \"and also\"Woman of Distinction\". with the respectable team of his family, Mr Madoff stated his guilt in the year 2009 and his famous strategy was \"split strike conversion\"and his \"Red Flag\" would have been the fact that he would have overtaken the market had he traded the options in the volumes necessary to meet his financial goals. Jeffry tucker was an attorney for 8 years at the SEC , and he also faciliteted the meeting between the Fairfield Greenwich Group and Madoff resulting in the loss of $ 7.3 billion as a sinle biggest loss. With the circle of the respectable personalities within his.

1. The Fraud of the Century: The Case of Bernard Madoff update facts in this case with more
current information. How do these new facts reflect changing social attitude towards the
investment industry?
Solution
Bernard Madoff Case - The Fraud of the Century.
In the year end of calendar year 2008, a pozi scheme was unearthed and become into public , the
fraud was perpeuted by Bernard Madoff.
The Ponzi terms was evolved and termed on the name of Charles Ponzi , who in the early
tweenth century , it was seen that a way to profit from international reply coupons . The said
international coupons were a guarantee of return postage in response to an international letter.
Chrles Ponzi visualized that he could legally make money , by swapping out these coupons for
more expensive postage stamps in countries where the stamps ere of higher vaues. He promised
to investors 50% profit in a few years and the bubble were bursted.
In the similar Ponzi scheme Mr. Madoff took the money from the new investors to pay earning
for existing customers. Bernie Madoff started in the investment business by legally buying and
selling stock not listed on the New York stock Exchange (NYSE), started in 1960 as a sole
proprietorship he served as a whole seller between institutional investors. In early days, he made
his money on the variance/spread between the offer price and sales price of stocks.
his trade was zoomed in the year 1990, and his trade volume reached the 10% mark of the total
trading of NASDAQ , USA. Mr Barnie was working with his brother Peter and developed
superior techniques for trading , buying etc., at the best prices. Madoff did not operated any
hedge fund , which charges a fee for services and hold the money at a custodial bank . in this
way he become more fund backed and become successful and bold, Peter took the firms
securities business.
Mr Bernie became the Chairman of NASDAQ in the years 1990, 1991 and again 1993, and due
to his standing he promised consistent return 10-12 % per year, and Bernie was drawing billions
of dollars from hundreds of high net worth investors. In addition to he helped an government
backed seat in the advisory board.
Peters niece, Shana Madoff also joined in this bandwagon of prosperity as a compliance officer
of this firm and she married to Eric Swanson , a former SEC compliance officer, and the girl was
christened with "Girls Scout "and also"Woman of Distinction".
with the respectable team of his family, Mr Madoff stated his guilt in the year 2009 and his
famous strategy was "split strike conversion"and his "Red Flag" would have been the fact that

2. he would have overtaken the market had he traded the options in the volumes necessary to meet
his financial goals.
Jeffry tucker was an attorney for 8 years at the SEC , and he also faciliteted the meeting between
the Fairfield Greenwich Group and Madoff resulting in the loss of $ 7.3 billion as a sinle biggest
loss.
With the circle of the respectable personalities within his family Mr Madoff amassed a huge sum
of money and once the bubble busted and Carl Shapiro gave Madoff $ 250 million, and lastly Mr
Madoff was arrested on 11.12.2008 . accused of operating 450 billion ponzi scheme after
confessing his failure to his sons Andrew and Mark , who worked with their father in the firm.
The official charge is criminal securities fraud.
Many of the investors impacted by the ponzi scheme and securities fraud and Mr Madoff would
be an example of Whie-Collar crime.
Though the scam shaken the conscience of the many investors and they become more cautious
and keeping the transactions in black and white in paper. But the main point is the some high
respected person using their status and position and they succeeded to inculcate the gullible
investors whether he / she is ordinary investor or a influential HNI. They are often trapped of
lure ond glory of higher return in a very short period and the businessman , savers gives their
money by making empty their own chest and business. The spiral of fund raising gathers at very
high gear, because the first investor tells his / her story of becoming prince / princes and tempted
to invest their money. In the developing country, in India also many schemes are surfaced.
in view of above, though the regulators of many countries has been more cautious for improper
trading, funding etc, but the the attitude of the investor to earn extraordinary revenue has not
gone out of their mind.
THE END.