Bernard Madoff Scandal

Bernard Madoff Scandal
Accounting Fraud Examination By: Wagner
October 12, 2011
Introduction As we look back on the first decade of the 21st Century, we see that Corporate America
and the Financial Markets were riddled with corruption and fraud. At the beginning of the decade
we saw the likes of Enron and WorldCom become insolvent due to accounting frauds of epic
proportions. The one case that stands out amongst all of them is the Bernard Madoff case, which is
considered to be the largest fraud case of all time. "Madoff managed to lure billions of dollars away
from huge charities, as well as wealthy individuals in both the United States and Europe by getting
them to invest in his hedge fund. He did so by claiming extraordinary returns (generally ... Show
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(Gregoriou et al, 2009). It is easy to see why people had no problem giving him their money to
invest with returns like those. Mr. Madoff had a surprising simplistic approch to investing, he called
it a split–strike conversion, better know to some as a collar or bull spread. 1. "Buy a basket of stocks
highly correlated to the S&P 100 index. 2. Sell out–of–the–money call options on the S&P
100 with a notional value similar to that of the long equity portfolio. This creates a ceiling value
beyond which further gains in the basket of stocks are offset by the increasing liability of the short
call options. 3. Buy out–of–the–money put options on the S&P 100 with a notional value
similar to that of the long equity portfolio. This creates a floor value below which further declines in
the value of the basket of stocks are offset by gains in the long put options" (Gregoriou et al, 2009).
As illustrated below.
Exhibit 2: Track record of Fairfield Sentry Ltd, one of the Madoff split–strike conversion strategy
feeder funds.
(Gregoriou et al, 2009).
To intice new and continued investments from clients, he promised certain clients annual amounts
up to at least 46% per year. He also told them that his fee would be approximately $0.04 per share
commission on the stocks he traded for them. Contrary to these promises, he would use investor
funds to meet redemption requests from
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How Did Bernard Madoff Create A Ponzi Scheme
I think Bernard Madoff engaged in creating a Ponzi scheme because of greed. His unethical
behavior was based on white collar crime (Ferrell, Fraedrich, & Ferrell, 2013). Mr. Madoff met the
characteristics of a white collar criminal. The characteristics consist of people who are highly
educated and considered as reliable among their subordinates and peers. They are usually in an
executive position that would give them the power to commit their crimes to their company,
employees, and investors (Ferrell, et al, 2013). Mr. Madoff's Ponzi scheme took careful coordinating
and preparation to last as long as it did and to become the largest Ponzi scheme in history. He used
his greed to entice the greed of his investors by offering them unrealistic

Analysis Of Bernie Madoff 's The Wall Street Firm Bernard...
Intro
Bernie Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960,
and was its chairman until his arrest on December 11, 2008. Madoff Investment Securities was
famous for its reliable annual returns of 10 percent or more. By the end of the 1980s, his firm was
handling more than 5 percent of the trading volume on the New York Stock Exchange. (insert
citation here). The firm was one of the top market maker businesses on Wall Street.On March 12,
2009, Madoff pleaded guilty to 11 federal felonies and admitted to turning his wealth management
business into a massive Ponzi scheme. The Madoff investment scandal defrauded thousands of
investors of billions of dollars. He was found out as such: The day before, the investor informed his
sons that he planned to give out several million dollars in bonuses earlier than scheduled, and they
demanded to know where the money was coming from. This is where he made his mistake. Madoff
then admitted that a branch of his firm was actually an elaborate Ponzi scheme. Madoff 's sons
reported their father to federal authorities, and the next day Madoff was arrested and charged with
securities fraud. (insert citation here). Apparently his two Andrew Madoff and Mark Madoff who
worked for him, never knew that what their father was doing was running a ponzi scheme. While
one of the sons was diagnosed with cancer, the other son committed suicide as a result of the public
shame his father had bought to their family.

Bernard Madoff
Running head: BERNARD LA WRENCE "BERNIE" MADOFF 1 BERNARD LA WERENCE
"BERNIE" MADOFF Naamah Pagan Augustine Weekley Business Law 1 August 21,2011
BERNARD LA WRENCE "BERNIE" MADOFF 2 Introduction Bernard Lawrence "Bernie"
Madoff ran one of the largest Ponzi Schemes. A Ponzi scheme is a scam investment designed to
separate investors from their money. It is named after Charles Ponzi, who constructed one such
scheme at the beginning of the 20th century. The scheme is designed to convince the public to place
their money into a fraudulent investment. Once the scam artist feels that enough money has been
collected he disappears taking all the money with him. Describe three types of illegal business
behavior alleged against Mr. ... Show more content on Helpwriting.net ...
Madoff s father in laws loaned him $50,000 to start Bernard L Madoff Investment Securities. Many
of his family members worked for him in key positions that they were not qualified to hold. Madoff
apparently ripped off everyone, retirees, celebrities and some of the riches people in America. There
were a staggering number of billionaires and celebrities who were caught up in what is believed to
be a $50 billion Ponzi scheme. Several members of Forbes list of the 400 riches Americans were
victims of Madoffs scam. Describe three business safeguard 9risk managementO that may have
prevented the harm caused by Mr. Madoff One of the safeguards that would have been good for
Madoff s company would have been the concern of controlling person liability. Madoff had too
many immediate family members holding key positions in his company. No amount of company
oversight could have been effective under these circumstances. There were no checks and balances
to make sure everything was being done legally. Having non family members in the key positions
would have made it more difficult for Madoff to participate in illegal activities. Another safeguard
would have been if the company employees, investors had practiced due diligence. clients and Due
diligence involves identifying and detailing with in a given organization business the' various risk
that could be encountered BERNARD LAWRENCE "BERNIE" MADOFF operating. 5 There
weren't a lot

The Control Environment Of Bernard L. Madoff Investment...
What were the weaknesses in the "control environment" of Bernard L. Madoff Investment Securities
LLC? "The control environment sets the tone of an organization, influencing the control
consciousness of its people. It is the foundation for all other components of internal control,
providing discipline and structure." The Committee of Sponsoring Organizations of the Treadway
Commission (COSO) published the Internal Control–Integrated Framework in 1992. As summarized
above one can see the importance of the implementation of an effective control environment, as it
sets the foundation for the other 4 components of internal control. The control environment is made
up fundamental smaller components. The ones that were particularly relevant to BMIS are the use of
board of directors and audit committee, management philosophy and operating style, and human
resource policies and practices. If management doesn't prioritize control, then the rest of the
organization will not put precedence on following policies and procedures either. This was clearly
evident at Bernard L. Madoff Investment Securities LLC (BMIS), and ultimately led to their
downfall. BMIS did not maintain an effective control environment and as a result it was exposed to
many material weaknesses. Specifically it can be determined that management did not have
adequate controls in place to establish and communicate the importance of control needs from top
down. This is largely due to the fact that the management's

Bernard Madoff 's Ponzi Scheme
I am baffled as to how long Bernard Lawrence Madoff's Ponzi scheme lasted. He started Bernard L.
Madoff Investment Securities LLC in the summer of 1960, and did not get caught until he turned
himself in on December 10, 2008. There are several things he did to keep himself from getting
caught, and several things that could have been done to figure out something odd was happening.
Two major points aside from the questions that I'm doing to dive into are that Friehling was not
independent and the SEC should have looked into Markopolo's accusations. There are several
different procedures that independent auditors could apply. They must know the materiality of the
investment to determine whether or not the amount is relevant, check the amount of assets and
liabilities included in the investment, and know the specific risks that present a possibility of fraud
in the company's financial statements. They should also understand the client and his or her
environment to consider inherent risks and internal controls related to the financial investments.
They could even design more audit procedures, such as testing controls and checking year–end
balances. A "peer review" is an occasional review of a firm's quality control system in
auditing/accounting. It's important that this is done by an outside firm, so that no bias is made in the
decision. Peer reviews are intended to maintain and improve the quality of the auditing/accounting
services performed by firms. Friehling &

Bernard Madoff
Bernard Madoff and the 2008 Financial Crisis On December 11, 2008, the Securities and Exchange
Commission ("SEC") charged and arrested Bernard Madoff and his investment firm, Bernard L.
Madoff Investment Securities LLC, with securities fraud for a multi–billion dollar Ponzi scheme. On
March 12, 2009, Madoff pled guilty to an 11–count criminal complaint admitting to running an
international Ponzi scheme and defrauding thousands of investors. The SEC defines a Ponzi scheme
as an investment fund that involves the payment of purported returns to existing investors from
funds contributed by new investors (SEC). In the 1920s, the originator of the Ponzi scheme, Charles
Ponzi, conned thousands of New England residents into investing in a ... Show more content on
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Peter was hired as the head of compliance and de facto COO for the legitimate trading business. He
was Madoff's right hand man and most valued business asset. Andy possessed a holistic view of
complex technological issues, but was viewed by his employees as someone who was
unapproachable and haughty. Mark ran the main trading business and was thought to have been the
heir to the Madoff throne (Fortune). Bernard L. Madoff Investment Securities occupied 2.5 floors in
the Lipstick building located in New York City. The main trading floor was on 19; the software
programmers were stationed on 18 and the lucrative hedge fund operations was stationed on the
17th floor. To the traders, the 17th floor was off limits and was kept a secret. One trader recalls, "We
knew it was statistically impossible [to have the steady gains for which Madoff became famous]. We
always kind of wondered: How the hell does he do it?, You'd say, There couldn't be anything bad.
The Madoffs had such a name – and such an aura" (Fortune). At first, he handled the money of a
small circle of friends and family offering them high returns with little risk. Over time, he delivered
on his promises and the inner circle of investors began to grow. Jerry Reisman, a lawyer in New
York who knew Madoff socially, said Madoff would approach these individuals, "In a social setting
– that is where it always happened." These

The Illegal and Unethical Activities of Bernard Lawrence...
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 ... Show more content on Helpwriting.net ...
I know, I myself, if I was investing 5 million to Madoff who supposedly told me he could earn an
unusually higher return on my money than other investors, I would want to know exactly how he
was doing it. A financial risk manager might have been able to stop this from even happening. They
might have seen that Madoff's investment company was making substantial returns that were
significantly higher than everyone else in the same market, and was doing it consistently year after
year, then they might have saw that something just didn't add up. 4. Describe three ways private
investors might have better protected themselves from risk. It is an easy job to find thousands of
financial agencies who are ready to serve clients high benefits on their investments, but it's a tougher
job to sort out the reputed and reliable ones among them. So before investing their hard earned
money, they should survey the market first to know the agency 's reputation. After doing their
research they should better protect themselves by: 1.Using a Certified Financial Planner which have
more training than others and must adhere to a strict Code of Ethics mandated by the Financial
Planning Association. 2. Sticking with investments they can understand and making sure their
advisor can explain and you can understand

Bernard Madoff the Fraud of the Century
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. ... Show more content on Helpwriting.net ...
Although Bernard Madoff has been condemned, there are still some unresolved matters such as "
how Bernard Madoff has been able to escape during all these years to the Sec investigation? And "
who are among the Madoff's clients victims and accomplices of this huge financial frauds ?
Question 1: What are the ethical issues involved in the Madoff case?
At first lets define what is an ethical behavior: Ethical behaviour is characterized by honesty fairness
and equity in interpersonal, and professional relationships, ethical business practices also include
assuring that the highest legal and moral standards are observed in your relationships with the
people in your business community.
As regards Bernard Madoff, the ethical issues involved in his case are: the betrayal, the lies and the
breach of trust.
Indeed after that his Ponzi Scheme was discovered the fisrt reaction of the Wall Street's community
was " Not Bernie !" it shows that people really trusted him and relied on him, not only rich investors
from worldwide, American workers charity organization and even its Jewish community. Bernard
Madoff deceived everybody, investors, regulators, banks, associates and his family too.
En ethical behavior would have been to say before he began his fraud " I can't do it" and to
communicate on these problems with its associates and to meet its investors and say the truth.
Instead of this, as he said in the

Bernard Madoff
MVE220 Financial Risk
The Madoff Fraud
Shahin Zarrabi – 9111194354 Lennart Lundberg – 9106102115
Abstract: A short explanation of the Ponzi scheme carried out by Bernard Madoff, the explanation to
how it could go on for such a long period of time and an investigation on how it could be prevented
in the future. The report were written jointly by the group members and the analysis was made from
discussion within the group
1. Introduction Since the ascent of ... Show more content on Helpwriting.net ...
As a result of these precautions and many more, explained in the next section, it took until late 2008
before the scam was exposed, although people had accused the so–called hedge fund for fraud as
early as 2001.
Exposure and punishment
The ones who finally exposed the scam were Bernard Madoff's sons, Andrew and Mark Bernard,
who after they found out that the company was based on a Ponzi scheme reported it to the
authorities. This resulted in the arrest of Madoff on December 11th, 2008. He was accused of fraud
and the embezzling of up to 65 billion dollars. He pled guilty to all charges, including money
laundering, mail fraud and making false filings, and in June 2009, Madoff was sentenced to serve
150 years in prison [6].
3. How could this happen? So how could Madoff pull off the biggest Ponzi scheme in the history
of finance? The question should rather be why the SEC, the U.S. Securities and Exchange
Comission, didn't interfere with Madoff's investment company despite receiving warning flags for
almost a decade before the actual arrest. A quick introduction to Harry Markopolos In 1999, Harry
Markopolos, a former securities industry executive, received information about a fund running $6
billion, which would make it one of the biggest funds on Wall Street at the

Bernard Madoff Essay
1. What ethical issues were raised in this case?
With the focus on these videos, one can understand the value of business ethics which should not be
taken lightly as they had various bad experiences in past. Since 2000, ethical scandals erupted
throughout the American corporate. There are many cases in which issues of fraud, conspiracy,
conspiracy to commit securities fraud, grand larceny, and obstruction of justice were raised during
the time of business running by known Companies leader. Enron is one of the example where their
leader had made its fail with a loss of $60 billion. Similarly, in 2009, Bernard Madoff, was
convicted of bilking investors out of more than $50. Therefore, points are very clear about the fraud
and conspiracy case

A Ponzi Scheme Essay
A "Ponzi scheme" is defined by the SEC as investment fraud, that incorporates remuneration of
professed returns to old investors from funds contributed by new investors. It could be thought of as
a systematic process, requiring consistent fraudulent action and deceitfulness. Usually Ponzi
schemes are generally short in length, but Madoff's lasted for almost 30 years. In simpler terms, a
Ponzi scheme is built upon the idea of robbing Peter to pay Paul, when in essence no real investment
is made (Moaf.org). A Ponzi scheme promoter attempts to appeal to new investors by promising
high returns with little to no risk involved. The new money obtained from the unfortunate and
hopeful investors is then disbursed to it's earlier constituents, ... Show more content on
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According to the Museum of American Finance, Charles Ponzi would bestow dividends from his
notes to earlier investors with funds accrued from subsequent investors. Of course, then the
subsequent investors required a pay out, creating the necessity of Ponzi to acquire more investors to
cover his more recent accumulated liabilities.
As with most Ponzi schemes scheme, the more inflated the necessary returns grew the closer to self
destruction the scheme becomes. Ponzi had to come up with a credible investment postulation. He
claimed to be involved with a profit–yielding arbitrage of purchasing international postal reply
coupons (IRC) in other countries and then exchanges them at face value in the United States,
therefore making a profit. Arbitrage consists of acquiring an asset in a particular market at a
discount and then subsequently selling the same asset in a different market for a higher price,
thereby making a profit off the transaction (SEC.gov). It wasn't until Clarence Barron reported, "160
million international postal reply coupons would be needed to cover Ponzi's investments and only
27,000 were in circulation (Fraudnewsamerica.com).
Just as Charles Ponzi's scheme operated, the essence of Bernard Madoff's Ponzi scheme was quite
similar. Madoff's scheme consisted of generating returns for its investors, by way of cash deposits
compiled from its new investors. As long as new investments were consistently made, the Ponzi
scheme can continue to operate and

Bernard Madoff Case
The Madoff case is an example of white collar crime. When most of us think of crime we do not
think about someone in a professional setting, or for that matter, anyone that we trust with our
money. Bernard Madoff was a business professional who ended up negatively impacting his life, the
lives of his family, the lives of his investors, and the trust of investors in general by his unethical
decisions. Some argue that the people that surrounded Bernard Madoff, both professionally and
personally, should have known that he was conducting unethical practices. They believe that those
surrounding him had to know of his wrong doing since they were benefiting from his bad practices
and should be held accountable in addition to Madoff.
However, I will focus on Madoff's choices. No matter how you look at it I do not believe that
anyone could argue that Madoff actions were ethical. He made conscious decisions to use people's
money and the money of various companies' for his personal gain. He left unknowing victims
thinking that they made good investments by providing statements of gains ... Show more content on
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As a mother, I can't imagine that anyone would purposely ever act in a manner that would have a
negative impact on my children. While I am sure he did not want to ruin the lives of his family, his
actions did. His lack of moral principal allowed him to not only make an unethical decision once,
but time and time again. I see these actions as an example of egoism. Egoism is a fine line, as if
businesspeople do not have self–interest, they are not able to grow and maximize their businesses
and provide others with jobs (Overall, 2016). This fine line was clearly crossed by Madoff as he put
his self interest in front of others knowing that he was doing wrong. It would appear that anything
for personal gain, right or wrong, was how he chose to live his life and his

Bernard Madoff Essay
Bernard L. Madoff was an executive of a multi–million dollar foundation created with the purpose
to serve as a Ponzi Scheme to cheat investors of billions. He used the money from new, incoming
investors to pay off supposed profits to earlier investors. This allowed for the operation to appear
profitable and legitimate, even though no actual profit was being made because there was no actual
investment. He was able to convince his investors to keep their investments in through the trust that
he accumulated from relationships within social networks. This trust was a result from his
assimilation into social networks that held a deep specific 'culture' that would be used as a tool for
him to become embedded. The term "Embededness" refers to the ... Show more content on
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This "culture" refers to "people of, slightly older money, who maybe [aren't] that interested in the
market, who kept saying to each other, 'Just give Bernie your money, you'll be fine'"(Feur and
Haughney). This immediate trust onto Madoff from investors, without any empirical evidence that
he could give them a profit is what allowed him to exploit these networks. He was described as
someone who was not part of a " 'blister pack' as one club member put it, a term that refers to those
who get blisters on their hands and feet from ascending social ladders" (Feur and Haughney). This
means that someone who belongs to this "blister pack" is only out for themselves and is not really
interested in the relationships one can acquire, but instead wealth. By appearing as though he was
not part of the "blister pack", and gaining trust, this allowed for the very existence and enhanced
opportunity for malfeasance (Granovetter). The embededness within specific social networks
allowed for enormous trust to accumulate and, thus, enormous malfeasance follow as a result from
personal relations. Because he "never flaunted anything" as one long friend put it, it went hand in
hand with

The Ponzi Scheme (Bernard Madoff)
e)The Ponzi Schem(
Bernard Madoff
First Semester – 2012
Contents:
Name of the company..................................................................2
Field of the company.................................................................2
The Ethical dilemma or issue, which faced the company....................2
The Consequences of ethical dilemma............................................3
–Economical consequences.......................................................3
– Social consequences.............................................................3
– Political consequences...........................................................4
The solution or the end of the ethical dilemma.................................5
–Largest stake–holders............................................................5 –
Incarceration.......................................................................6
References..............................................................................7
Student ... Show more content on Helpwriting.net ...
By staying on top of federal and state securities regulations, Crosby–Brown and others at
Regulatory Compliance keep client firms aware of the ramifications of current regulations and
abreast of the latest changes. They educate clients on the impacts of new regulations, how to
mitigate the impacts, and how they can prepare for regulatory examinations, such as reviewing
supervisory procedures, accurately documenting policies and procedures, and monitoring firm
activities.

The solution or the end of the ethical dilemma:
Largest stake–holders
The investors with the largest potential losses, including feeder funds, are:
Fairfield Greenwich Group, $7.50 billion Tremont Capital Management which is owned by
MassMutual, $3.30 billion Banco Santander, $2.87 billion Bank Medici, $2.10 billion Ascot
Partners, $1.80 billion Access International Advisors, $1.40 billion Fortis, $1.35 billion HSBC, $1
billion
The potential losses of these eight investors total $21.32 billion.
There is the issue of the opaque and secretive nature of hedge funds. Critics say opacity caused the
Madoff crisis. When Bernard Madoff started his

Fall Of Bernard Madoff
Bernard Madoff was one of the most biggest ponzi scheInmer in American History. According to
Biography.com Editors article Bernard Madoff Biography Bernard Madoff was born on April
29,1938 in Queens, New York to Ralph and Slvia Madoff (Biography.com Editors). Also, Bernard
Madoff went to Far Rockaway High school in 1952 where he was on the swim team and he also had
a job being a lifeguard at Silver Point Beach Club at Long Island, New York (Biography.com
Editors). The authors continue to say, after he graduated from high school he went to Alabama
University for his freshman year and than he transferred to Hofstra University to finish his degree in
political science (Biography.com Editors). Furthermore, Bernard Madoff was also the chairman of
NASDAQ from 1990 to 1993 and also the chairman of Madoff Securities (Biography.com Editors).
In this paper I will talk about the Ponzi scheme, Individualism, Utilitarianism, Kantianism, the
virtue ethics and the fall of Bernard Madoff. According to the U.S Securities and Exchange
Commission a Ponzi scheme is an investment fraud that involves the payment of purported returns
... Show more content on Helpwriting.net ...
Barnard Madoff had one trait and traits I think he should have. Madoff had courage because he
knew the Ponzi scheme was wrong but he had the courage to do it. One of the traits Madoff should
have is honesty and he should have improved this trait. According to Heather Salazar article Bernie
Madoff: Greatest Ponzi Scheme in U.S. History she said Madoff lied to many people's faces and
deliberately stole money right from underneath them (Salazar). Another trait Madoff should have is
justice because He did not do what was morally right by running the Ponzi scheme and because of
it, the scheme caught up to him that is why he is in jail for the rest of his

Bernard Madoff Case
Hello Student,
Before you start to do this paper, one of the first things you should note is that, it is always advisable
to read and understand what is required of you; so that when conducting your research you will
know what to look for. I have provided you with a list of references at the end of this solution for
which you can read through them before your start your analysis. After reading through
articles/journals etc. you should then next proceed to create an outline of your analysis. By forming
an outline you will be better able to attack each issue in an orderly manner. I have provided a
suggested outline for you below (followed by a more detailed approach): * Introduction (which may
include a brief overview of the life of ... Show more content on Helpwriting.net ...
Gregoriou & Lhabitant (2009) stated in their paper that, "initially, BMIS was a pure brokerage
business. It paid brokers $0.01 per share to execute their retail market orders; and since the NYSE
was charging for order flows this convinced others to redirect a significant share of their trading
volume to BMIS as well, to create what was known as "the third market." They further claimed that,
"by 1989, BMIS was a market maker handling more than 5% of the trading volume on the NYSE.
But, the brokerage business was becoming increasingly competitive and margins were shrinking.
Madoff therefore decided to create a separate investment advisory firm, which he located one floor
below his brokerage business. In 2008, BMIS had $700 million of equity capital and handled
approximately 10% of the NYSE trading volume. Its 200 employees (100 people in trading, fifty in
technology, and fifty in the back office) were divided between New York and London, but only
twelve of them were assigned to the famous split–strike conversion strategy (which will be
discussed later) devised by Madoff."
Execution of the Fraud Madoff's character was unquestionable and when news broke that Bernard
Madoff, the man described as a legend had defrauded investors billions of dollars, one of the first
questions that many asked was, how was this man able

Bernard Lawrence Madoff 's Life
Lawrence "Bernie" Madoff, American fraudster and a former stockbroker, investment advisor, and
financier, born on April 29, 1938. His birth place in Queens, New York. His Birth name "Bernard
Lawrence Madoff." He was raised in a Jewish family with two siblings. His Mom Sylvia was a
daughter of Romanian and Austrian immigrants and a housewife. His parents Ralph and Sylvia
Madoff. His father Ralph, a child of Polish immigrants. And worked as a plumber for many years. In
1932, his parents got married. In 1956, Madoff went to the University of Alabama for one year after
graduating from high school; then he transferred to Hofstra University in Long Island. In 1959,
Madoff married his high school girlfriend, Ruth. In 1960, Madoff got his ... Show more content on
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The longest and largest and most widespread Ponzi Scheme began in December, and it ended on
Monday as Madoff was sentenced to 150 years for Ponzi Scheme and this is the maximum for his
crime. Mr. Madoff had apologized a few months before for the hard he inflicted on his clients who
had trusted him. Also, he apologized for his employees and his family. Madoff won't admit his
failures as a money manager, because of his pride. Madoff gave a speech in the court room and
apologized for everything he did. Judge Chin said that no family, friends or any other supporters had
submitted any letters on Madoff's behalf that he did some good deeds. In the court, no members of
his family came. The court did not charge Mrs. Madoff with any crime, and she did not know what
her husband did. He prevented a strategy to set up his portfolios to look like he was matching the
returns of the S&P 500. And that strategy prevented him from needing to pay a lot to his investors,
and it still made him holdings appeal to new targets. His investors thought that they could withdraw
their money, so they had no reason to doubt him. On the other hand, some analysts felt that there
was something off when they tried to replicate his performance. In late 2008, Madoff realized that
his scheme loses steam

Bernard Madoff Fraud
Abstract
This report allows the facts to be known concerning the still mysterious case of Bernard L. Madoff
and his longtime investment securities activities, which eventually turned into an enormous fraud of
incomparable size. In this report, you will begin to understand how Bernard Madoff was able to
execute such an elaborate fraud. The illegal business behavior found in this case is too numerous to
count however, quite a few will be identified. In addition, the roles of the perpetrators, accomplices,
and their involvement in this scheme will be made known. This fraud had such an enormous impact
on the victims, we will examine several implementations that the private investors could have
implemented to protect themselves. An ... Show more content on Helpwriting.net ...
Clients were promised that Bernard Lawrence Madoff Investment Securities (BLMIS) would invest
their funds in a basket of approximately 35–50 common stocks within the Standard & Poor's
100 Index (the "S&P l00"), a collection of the 100 largest publicly traded companies in terms
of their market capitalization. MADOFF claimed that he would select a basket of stocks that would
closely mimic the price movements of the S&P 100. MADOFF further claimed that he would
opportunistically time those purchases, and would be "out of the market intermittently, investing
clients' funds in these periods in United States Government issued securities such as United States
Treasury bills. MADOFF also claimed that he would hedge the investments that he made in the
basket of common stocks by using investor funds to buy and sell option contracts related to those
stocks, thereby limiting potential losses caused by unpredictable changes in stock prices. ("United
states of," 2009)
Madoff's Illegal Business Behaviors Exposure Federal prosecutors filed a total of eleven charges
against Bernard Madoff. The first of those charges was for securities fraud. The crime of securities
fraud involves false claims of investment security holdings, and misinformation regarding stocks
and brokerage advice. Sensational insider information is also considered a component of this
criminal activity. Another major charge involved three counts of money

Bernard Madoff 's The Ponzi Scheme Essay
Intro/Overview
Bernard Madoff ran the worlds largest ponzi schemes; he lost investors approximately seventeen
billion dollars in principle. The following report goes through the events in general from begging to
end including a description of the fraud committed, the stakeholders involved and the consequences
for them, the role of the auditors and finally the outcome for those held responsible for the ponzi
scheme.
The organisation, time and place
Bernard L. Madoff Investment Securities LLC operates as a securities broker/dealer in the United
States and internationally. It provides executions for broker–dealers, banks, and financial institutions
(Bloomberg, n.d).Bernard Madoff founded Bernard L. Madoff Investment Securities LLC in 1960 at
the age of 22 (The New York Times, 2009). The company had two offices in New York and London.
Madoff revealed he was operating a ponzi scheme to his family on December the 9th 2008 and was
arrested on the 11th (DuBois, 2009). The company was in liquidation as of the 15th December 2008.
What Happened
No one has been able to prove when Madoff began his scheme. Madoff himself has made
contradictory claims about when the crime began. Madoff told CNNMoney that it all started in
1987, but he later said the scheme began in 1992 (Smith, 2013). Bernard L. Madoff Investment
Securities LLC by 1989 handled 5 percent of the trade volume on the New York stock exchange
(DuBois, 2009). In may 2000 Massachusetts financial analyst Harry Markopolo's

Bernard Madoff 's The Ponzi Scheme
Being an investor and investment adviser, Bernard Madoff started off his career as a legitimate and
successful businessman also serving as chairman of NASDAQ for several years. Being well
respected and unfortunately blindly trusted, Bernard Madoff began to collect investors and clients
into his now know Ponzi scheme. Bernard Madoff's scheme was simply to continually pay high
returns to existing clients with the funds brought in by new investors without undertaking in any
form of legitimate investment activity. Bernard Madoff was able use his reputation and connections
on Wall Street to deceived investors out of billions of dollars by promising high returns with little to
no work on their part. They figured it was an easy win on their part, which was ultimately their
downfall.
Bernard Madoff and even many of his investors and accomplices lacked the desire to demonstrate
social responsibility. Solely for the profit, Bernie Madoff and his accomplices created and
participated in what can be considered the greatest Ponzi scheme in history. It's believe that the
reason that the scheme went on as long as it did was because the participants were financially
rewarded for their silence. Preferred employees were paid well and it bought their silence and
loyalty. There was little need or appreciation for honesty and professional business ethics with
Madoff and his accomplices when it came to their organization. "Trust and a good reputation are
some of your company's most valuable

Bernard Madoff Greed
Bernard Madoff began his career like most any other investor. He started at the bottom and worked
his way to the top. As he became more successful, greed began to take over and he started to get too
big for his proverbial britches. He moved the company's headquarters from Wall Street to the
famous "Lipstick Building" on 3rd Avenue (Farrell, Fraedrich, & Farrell, 2015). As his credibility as
an investor grew, so did the respect that others had for him. He became known and trusted as a
highly knowledgeable investment specialist. Madoff appealed to the investors desires to feel like
they were his only client. He used an invitation only approach and was very secretive about his
business which created an air of exclusivity that lured many of his ... Show more content on
Helpwriting.net ...
Greed most likely, played a part in his continuing to keep his scheme alive. His son's are the ones
who ultimately turned him in. According to Murray (2010), morally courageous people persevere to
stand up for what is right, even when it means they may do so alone. His son's had to have been
morally conflicted, if not but for a brief moment. They knew when their father was convicted, he
would spend the rest of his life in jail and that had to be a very hard decision to make. Ethics is
driven from the core of what an individual believes is important, believes in or what he values; and
involves acting in accordance to what you believe (Bearden, 2015).
There are many ethical issues involved in this case. Bernie Madoff and his associates played out one
of the largest and most elaborate Ponzi schemes known today. This led to hundreds of investors
losing very large sums of money; sometimes even their life savings. His greed, lies, deceit, illegal
activity, fraud, and abuse of unsuspecting employees were all unethical and eventually led to the
demise of his empire and his life sentence in

Bernard Madoff 's Influence On The Great Depression Essay
Bernard Madoff was born in Queens, New York on April, 29 1938 to parents Ralph and Sylvia
Madoff. His parents married in 1932 during the Great Depression. Both struggled financially for
many years and then became involved in finance. In 1960 his mother registered as a broker dealer
using their home address in Queens as the office for Gibraltar Securities. His father was known for
many underhanded dealings causing the closure of the business by the SEC. From 1956 to 1965 the
couple's house had an unpaid tax lien which proved that their financial dealings weren't successful.
Young Bernie was introduced into this type of lifestyle at an early age, although he didn't seem as
interested in it at the time. Madoff graduated from Hofstra in 1960 receiving his bachelor's degree in
political science. With the help from his father in law, a retired CPA, Madoff and his wife started
their investments firm, Bernard L. Madoff Investment Securities, LLC. He took $5000 from his
personal savings and borrowed an additional $50,000 from his in laws who attracted investors such
as Steven Spielberg and Kevin Bacon. His business flourished during the 1980's with annual returns
of 10 percent or more and handling a percentage of trading volume on the New York Stock
Exchange. It grew into one of the largest brokerage firms on Wall Street. During this period
Madoff's growing business had gone through some illegal trading's on the side. More growth and
illegalities had his bank accounts flowing with

Bernard Madoff Financial Scandal Controversy
Bernard Madoff Financial Scandal
I would first like to begin this paper by saying why I decide to chose this topic out of the 3 choices. I
believe that all of the choices were credible and a viable topic in their own regards, but the reason
this one hit home for me was because of the simplicity of the scandal. It's hard to believe that
someone could have made off with the amount of money Bernard did when the idea of a Ponzi
scheme was notable as early as the 19th century, and was named after Charles Ponzi in 1920 after
his scandal created enough issues to make it more aware to the public of what was happening. The
fact that this happened almost 100 years later at the level that it did and where it happened made me
extremely concerned and interested in the topic. In this paper I will cover the details happening up to
the scandal, the scandal itself, the people involved in the scandal, the legislation and regulations
implemented after the scandal, and my views on the outcome of the scandal.
Bernard Madoff was born April 29th, 1928 in Queens, New York. He grew up as a son of two
Jewish parents, one of which was a stockbroker. He graduated from Hofstra University in 1960 with
a degree in Political Science and then moved on to attend Brooklyn Law School where he dropped
out to start and pursue his own company, Bernard L. Madoff Investment Securities LLC.
The firm was started with an initial fund of $5,000, which was earned by Bernard working as a
lifeguard and sprinkler

Bernard L. Madoff Case
In the 1960s a man names Bernard L. Madoff founded a small firm called Bernard L. Madoff
Securities LLC. In 1980 Madoff launched his firm with the $5000 that he had saved from his
previous summer jobs. His firm was ranked with some of the most powerful firms on Wall Street.
Madoff started off as a single stock trader before he turned it into a family business. Madoff had also
created "an investment– advisory business that managed money for high– net– worth individuals,
hedge funds, and other institutions (Weiss, J.). For over 10 years Madoff decided to run a scam on
everyone that invested in his company. Since Madoff started his company in the 1900s it was always
illegal and unethical. Madoff would take money from the new investors and return it to old investors
because he was not running his business properly. Only certain people were allowed on the 17th
floor where all of the investment went on. Madoff ended getting caught for investment fraud worth
$65 billion. No one ever questioned Madoff because of his name. People thought he was the best
thing out there and never thought to question his actions, not even his employees. Madoff would
take money that some of the largest firms would invest in his business and take for himself. So
many people believed he was a trustworthy person that they did not follow some of the main
procedures that needed to be done in while operating their own businesses. Madoff was able to start
and sustain such an enormous Ponzi scheme all

A Report On The Ponzi Scheme
Executive Summary
This report provides a breakdown and assessment of the Ponzi scheme run by American swindler
and former stockbroker, investment advisor, and financier Bernard "Bernie" Madoff. The research
draws attention to the biggest fraudulent scheme in U.S. history, emphasizing the use of the so–
called Ponzi scheme. Madoff used a variety of techniques that made it difficult to disclose the scam.
At the end of each month Madoff sold all stocks and financial instruments so that the hedge fund
only reported the amount of cash to the authorities. Further on, investors did not have any online
access to their investments, instead they received a mail with their account information and balance
each month. The report iterates the details of ... Show more content on Helpwriting.net ...
The man behind it managed to keep the scheme running for over 15 years in one of most monitored
economic systems in the world. The man in charge of the operation, Bernard L. Madoff, got arrested
for his scheme and pled guilty to the embezzling of billions of US dollars. This report gives an
insight on how the Madoff fraud was carried out, how it could go unnoticed for so long and if
similar frauds could be prevented in the future.
Body
Bernard Madoff former investment broker and financer as well as the founder of Bernard L.
Investment securities and former chairmen for NASDAQ. Bernard L. Madoff Investment Securities
LLC operates as a securities broker/dealer in the United States and internationally. It provides
executions for broker–dealers, banks, and financial institutions. The company was founded in 1960
and is headquartered on Wall Street in New York, New York.
Madoff is responsible for the biggest corporate scandal in American history, known for pulling of
the Ponzi scheme and stealing up to $65 billion on paper cash. Ponzi schemes are considered as
highly illegal and a fraudulent investment operation. It operates by luring investors in by
guaranteeing unusually high returns. Ponzi schemes are run by a central operator, who uses the
money from new, incoming investors to pay off the promised returns to older ones. This makes the
operation seem profitable and legitimate, even though no actual profit is being made. Meanwhile,
the person behind the

Bernard Madoff Ponzi Scheme
Noora Al–salmi Dr. Sadler MBA–692–01 30 March 2017 Bernard Madoff's Ponzi Scheme Bernie
Madoff is a very well–known criminal that committed the biggest fraudulent scheme in U.S. history.
He got caught in December 2008 and was sentenced to 150 years in prison for that. He used
convinced thousands of investors to give him their savings and made them believe that they were
investing their money in something special. He guaranteed high and stable returns to his investors.
Madoff used a so–called Ponzi scheme which originated with Charles Ponzi, who promised the
investors 50% returns on investments in only 90 days. He made the operation seems real and
profitable, even though no actual profit is being made. He used the funds from the new investors

Bernard Lawrence Madoff
Bernard Lawrence Madoff was a well–known, respected, and beloved name in Wall Street for many
years. But before the scandal and before the fame he was just an average American Joe. He was born
in Queens, New York, on April 29, 1938. (Biography, 2016) His father's name was Ralph Madoff
and mother was Sylvia Madoff. He also had a brother named Peter Madoff who would later play a
key role in his investment firm. Bernard grew up quite knowledgeable about finance and the stock
market after his mother started a brokerage firm from their own home. It was forced to close by the
SEC for failing to file financial reports. (Shea, 2009) In 1956, Bernard graduated from Far
Rockaway high school where he met Ruth who he would later marry. After graduating ... Show
more content on Helpwriting.net ...
Individuals put their faith and trust into Bernard L. Madoff Investment Securities LLC. Clients not
only lost a vast majority of money that they perhaps may never get back but they also lost faith and
trust. Wealthy people invested their retirement earnings and their life savings into this company in
hopes of financial success and instead some clients got their hard earned money stolen for Madoff
own personal benefit. Matt Assad the author of the article titled "Madoff scam still cuts local
victims" speaks about a couple that invested millions of dollars into the company and how they were
affected. Michael De Vita one of the persons interviewed spoke on behalf of the situation and how it
made him feel. Michael states ""Well, I'm now 65, still working and I figure I have another 10 years
to go," the self–employed statistician said. "They can't recover 20–plus years of earnings. They can't
recover money that never existed. No one can be made whole." (De Vita, Assad 1). Thousands of
people are feeling the feeling of disappointment and despair that Michael and his wife have been
feeling for years. Madoff took almost 20 billion dollars from his clients and not even half of the
funds have been returned to the victims. We all work hard for our money, imagine having most of
what you worked for stolen? The invested victims of the ponzi scheme have truly suffered a lot
mentally, emotionally and

The Case of Bernard Madoff
Business Ethics Final Report The Fraud of the Century: The Case of Bernard Madoff Group No. 5:
International Students 麥立妲 98370389 魏維德 98370390 巴玉連 98370452 December 2011
Introduction We chose Bernard Madoff's case because we thought that we could relate his case to
many unethical behaviors. The analysis can be made on decision making and lack of ethical training
which we think is an important topic to focus on this course. On Dec. 11, 2008, Bernard Lawrence
Madoff confessed that his vaunted investment business was all "one big lie," a Ponzi scheme
colossal in volume and scope that cost investors $65 billion. Overnight, Madoff became the new
poster child for Wall Street gall, greed and ... Show more content on Helpwriting.net ...
In July 1989, Noel and Tucker give Madoff $1.5 million to manage and follow up the in January
1990 with an additional $1 million. In November 1990, Fairfield Greenwich starts the Fairfield
Sentry Limited Fund, its $4 million entirely managed by Madoff. "Once they created Fairfield
Sentry to invest exclusively with Madoff, that is when things really started to accelerate," recalls
Sherry Cohen, Walter Noel's former assistant. Corporate Governance Corporate citizenship involves
acting on the firm's commitment to the corporate citizenship philosophy and measuring the extent to
which it follows through by actually implementing citizenship initiatives. The Federal Sentencing
Guidelines for Organizations (FSGO) provides incentives for developing an ethical culture and
efforts to prevent misconduct. The Federal Sentencing Guidelines are rules that set out a uniform
sentencing policy for individuals and organizations convicted of felonies and serious (Class A)
misdemeanors in the United States federal courts system. The fiduciaries should have acted on
behalf of the best interests of the organization. It is very clear that Bernard Madoff's corporate
governance wasn't effective at all. They didn't have any governance mechanism for identifying risks
and for planning for recovery when mistakes or problems occurred. Madoff had the opportunity

Bernard L. Madoff
Bernard L. Madoff – Modern Ponzi Master Bernard L. Madoff Securities, LLC was formed by Mr
Madoff in 1960 with $5,000 that he had earned lifeguarding (A&E Television Network, 2014).
Bernie also secured a loan from his father–in–law in the amount of $50,000 to further fund the
newly formed business. At this stage in his career, Bernie was making the firm's profits by trading in
penny stocks. He would receive requests to make investments from his clients. He would then
contact another investor or broker to seek out the best price. The difference between what his clients
were willing to pay and what he could buy for represented the profit. Even during these early days
in business Mr. Madoff practiced some shady business ethics. Mr. Madoff began to have his father–
in–law "manage" the new clients that he brought to invest with Bernie (PBS.org, 2009). Bernie was
also not licensed as an investment advisor for the number of clients he had grown to serve. State and
Federal securities regulation during the time period was slack and Mr. Madoff was just one of many
advisors without proper licensing. In rewarding those that brought new investors to the firm,
Bernard L. Madoff Securities, LLC grew exponentially. Add to the equation an advantage given to
the firm by its advanced computerized trading operations and very quickly Bernie came to control
the fortunes of many notable people and organizations. The allure of steady profits in the range of
10% annually was too

Bernard Madoff: Scam Artist
In December 2008, one of the largest Ponzi scheme surfaced when Mark and Andrew Madoff
reported the works of their father, Bernard Madoff to the federal authorities. A Ponzi scheme is an
investing scam that promises high rates of return with little risk to investors. The operator generates
returns for older investors by gaining new investors. Bernard was arrested on December 11, 2008
and charged with securities fraud. He pled guilty to 11 counts and was sentenced to 150 years in
federal prison–the maximum possible prison sentence. A reported $17.3 billion was invested into the
scam by Bernie's clients and only about $2.48 billion have been returned to these victims as of
September 2012. Bernie Madoff was formerly known as a stockbroker, ... Show more content on
Helpwriting.net ...
The family was once again in a struggle, also with a $13,000 tax lien on the house that went unpaid
from 1956 to 1965. Everything from setting up the company and taking loans were all thought to be
a front for Ralph's backhanded dealings. At this time, Bernie was more focused on his swim team
and girlfriend Ruth Alpern, who he met in junior high and continued to date while they attended Far
Rockaway High School. He was hired by his swim coach as a lifeguard and here he began saving
for his later investment. Bernie graduated high school in 1956, and attended University of Alabama
for one year and then transferred to Hofstra University. He married his high school sweetheart in
1959. Ruth was actually the one focusing on finance at this time while attending Queens College. In
1960, Bernie earned his bachelor's degree in Political science from Hofstra. Ruth also graduated and
immediately got a job on the stock market in Manhattan. Bernie decided to study law at Brooklyn
Law School, but only went for a year and dropped out to begin his own investment firm. He used
the $5,000 that was earned from his lifeguard job to start up the firm. "Bernard L. Madoff
Investments Securities, LLC became known for its reliable returns of 10 percent or more and, by the
1980s, handled up to 5 percent of the trading on the New York Stock Exchange." There was one
individual that knew it was a fraud right from the beginning. In fact, he investigated it and laid a

Business Ethics Case: Bernard Madoff
Introduction
In the year 1960, with money he earned installing sprinkler systems and as a lifeguard on the
beaches of Long Island, Bernard Madoff founded "Bernard L. Madoff Investment Securities," a
"trading power" house that would become one of the largest independent trading operations in the
securities industry (Washington, 2012). In the year 2000 his company ranked among the top trading
and securities firms in the nation. By age 70, his name had become legendary; he was considered to
be one of the most "influential spokesmen" on Wall Street. But on December 11, 2008, Bernard
Madoff was arrested and charged "in a 20 year Ponzi scheme, which would come to be known as
"the most infamous fraud in Wall Street history (Leonard, 2008; ... Show more content on
Helpwriting.net ...
Investors prized his consistent and steady annual returns. On December 11, 2008, Bernard Madoff
was arrested at his Manhattan apartment on charges of multiple counts of securities fraud. His
investment fund, which had grown to become one of the largest independent trading operations, was
in fact a massive "ponzi–scheme." In March 2009 Mr. Madoff pleaded guilty to all federal charges
filed against him, which included "11 felony counts, including securities fraud, money laundering
and perjury" (Washington, 2012). On June 29, 2009, Madoff was sentenced to150 years in prison.
Bernard Madoff is now serving his sentence at the federal correctional complex in Butner, North
Carolina. Total amounts owed to investors were estimated at $65 billion, most of which were never
repaid.
Assumptions
After analyzing the facts we can reasonably assume that:
1. People invested their money with his firm because they believed it to be a legitimate business and
recognized Mr. Madoff as a skilled, successful, and experienced financial manager.
2. Those who had invested money did so with the belief that their earnings were due to legal
transactions.
3. Investors and employees trusted Mr. Madoff; they believed that he was honest and trustworthy.
They invested their money with his firm not just because he promised high returns but because they
trusted him as a person.
4. Mr. Madoff had

Bernard Bernie Madoff
Bernard "Bernie" Madoff (NASDAQ) Angela Collier LEG 100 George Asinc June 7, 2012
Introduction Bernard Lawrence Madoff was born April 29, 1938 in New York City to the parents of
Ralph and Sylvia Madoff. His father was a child of a Polish immigrant, and worked as a plumber for
years. Madoff mother was a daughter of a Romanian and Austrian immigrant, she was a housewife.
Madoff parents married in 1932 when the great depression was at its height. After struggling
financially for years, they got involved in finance in the 1950s. Bernard Madoff parents was not
successful with the trade, his mother was registered as a broker–dealer in the 1960s making their
home the office of their company called Gibraltar ... Show more content on Helpwriting.net ...
Simply put, too many immediate members of Bernie Madoff's family maintained controlling
positions, and none of them could be held accountable by anyone else employed by the firm. This
rampant nepotism created a wall of operational secrecy, which often proved to be impenetrable even
by close associates to the Madoff's. The only accountant for this firm was this not a red flag, enough
for everyone to want to check his background out and request for an outside audit on this person.
www.huffingtonpost.com/2008/12/15/bernie–madoff–ponzi–scheme_n_151018html. Describe three
ways private investors might have better protected themselves from risk. Private investors could
have protect themselves by investigating Mr.Madoff's investment company first, checking them out
to make sure they were up on top of everything. Pay attention to what kind of business dealings his
company was doing, follow his financial reports and ask around about how he is able to make the
returns that he is promising. Use such methods as practicing due diligence whenever one is
presented with new financial opportunities. Many investors were led astray on the poor advice of
their friends and family. One should investigate third–party custodian relationships at investment
firms, and review their auditing practices. Always ask question when something don't seem right or
ask questions when things don't add up. Request for a meeting, to discuss financial

Bernard Madoff Fraud
Abstract
This report allows the facts to be known concerning the still mysterious case of Bernard L. Madoff
and his longtime investment securities activities, which eventually turned into an enormous fraud of
incomparable size. In this report, you will begin to understand how Bernard Madoff was able to
execute such an elaborate fraud. The illegal business behavior found in this case is too numerous to
count however, quite a few will be identified. In addition, the roles of the perpetrators, accomplices,
and their involvement in this scheme will be made known. This fraud had such an enormous impact
on the victims, we will examine several implementations that the private investors could have
implemented to protect themselves. An ... Show more content on Helpwriting.net ...
Clients were promised that Bernard Lawrence Madoff Investment Securities (BLMIS) would invest
their funds in a basket of approximately 35–50 common stocks within the Standard & Poor 's
100 Index (the "S&P l00"), a collection of the 100 largest publicly traded companies in terms
of their market capitalization. MADOFF claimed that he would select a basket of stocks that would
closely mimic the price movements of the S&P 100. MADOFF further claimed that he would
opportunistically time those purchases, and would be "out of the market intermittently, investing
clients ' funds in these periods in United States Government issued securities such as United States
Treasury bills. MADOFF also claimed that he would hedge the investments that he made in the
basket of common stocks by using investor funds to buy and sell option contracts related to those
stocks, thereby limiting potential losses caused by unpredictable changes in stock prices. ("United
states of," 2009)
Madoff's Illegal Business Behaviors Exposure Federal prosecutors filed a total of eleven charges
against Bernard Madoff. The first of those charges was for securities fraud. The crime of securities
fraud involves false claims of investment security holdings, and misinformation regarding stocks
and brokerage advice. Sensational insider information is also considered a component of this
criminal activity. Another major charge involved three counts of money

The most controversial case of fraud in history left more...
The most controversial case of fraud in history left more questions than answers. Bernard Madoff,
with his company "Investment Securities LLC", chose the easy way to give him greater gains
scamming people. Using the prestige he had and giant Ponzi scheme. That was how he was creating
his fraud. Madoff did not steal the money immediately but was paid the promised returns with
money paid by the entry of new customers paying its customers their profits and not realize and
would not take legal action, this intelligent man or charlatan achievement out this scam film for over
20 years. Madoff achieving the greatest fraud in history with losses of more than 50,000 million
alone was compared with the Enron case. In June 29, 2009, he was sentenced ... Show more content
on Helpwriting.net ...
His legacy is a fraud of more than 50,000 million, affecting families , large financial institutions and
charities have been cheated with so–called " hedge funds " are hedge funds that collectively makes
traded and are held privately . Besides are not available to the public but because they require large
amounts of money for investment.
Why was ingenious Madoff?
As Amir Weitmann (2009) said "In fact, fraud was not so obvious. Many competent and professional
investors have lost money in this case, and are very easy to say they are all inept, incompetent, or
corrupt. "But it is to believe. The mechanism Madoff was a Ponzi scheme, where profitability is not
paid for the assets invested but by contributing to the fund money. The technique was not financial
but personal: lie and have credibility. This is what Madoff did with great skill. In addition to its long
experience, perfect background and charitable donations. Bernard Madoff paid investors every year
an unspectacular but respectable profitability and stable. In it he settled the evil genius of Madoff, an
attraction for investors in the hope of winning and the fear of losing. However, unlike the rest of
fraudsters, who did not propose too high as to arouse fear of risk performance.
Madoff began his career on Wall Street in 1960 and ended December 11, 2008, when he was
arrested

Bernard Madoff Ponzi Scheme Essay
Assignment #1– Ethics Paper Bernard Madoff Ponzi Scheme Bernard Lawrence Madoff was born
on April 29th 1938 in Queens, New York. In 1960, while in his early 20s he established his Wall
Street stock brokerage firm named Bernard L. Madoff Investment Securities LLC (BLMIS). To start
up this business, Madoff borrowed $50,000 (Editors, 2016) from his wife's parents. This support
from his father–in–law, who was a retired CPA, attracted investors to Madoff's new firm (Editors,
2016). His start–up company continued to increase in success with the addition of famous clients,
such as Steven Spielberg, participating in Madoff's business (Editors, 2016). The upscale cliental
were attracted to the steady high return being offered by Madoff, which made his investment firm so
much more prevalent than any others of the time. The esteem of Madoff's establishment amounted
to 5 percent of all the trading on the New York Stock Exchange (NYSE) in the late 1980s (Editors,
2016). ... Show more content on Helpwriting.net ...
A Ponzi scheme can be distinguished as "a swindle in which a quick return, made up of money from
new investors, on an initial investment lures the victims into much bigger risks (Unabridged, 2016)."
Madoff kept all extra money to expand his business and pay his employees, most of which were his
family. The fact that Madoff engaged in a Ponzi scheme ultimately lead to his personal and
professional demise. Madoff ended up in jail and his once prestigious company shut

Bernard Lawrence Madoff: Con Man
A ponzi scheme is a process that can be very successful, but is illegal and can be devastating to its
victims. The leader of the ponzi scheme must convince people to invest their money with promises
of high return rates. It relies on the constant addition of new investors because the older investors
get money from the newer investors (Sallinger, 2013, 571). Bernard Lawrence Madoff ran a very
long and successful ponzi scheme before getting caught and arrested in 2008. His ponzi scheme
caused great hurt to many people inside and outside of the company.
Bernie Madoff had a role in finding the Nasdaq stock market in 1971. Nasdaq became a fast and
easy way to trade stocks. New York Stock Exchange specialists charged a small fee for trading
stocks, but Madoff would pay firms a small amount for their orders. This was called, "payment for
order flow" and was a completely legal way to conduct investments. It was very controversial,
however, and many New York Stock Exchange specialists were up in arms about it. NSYE
specialists complained that payment for order flow was unfair and was influencing firm's decisions
of who to invest with. The NASD reviewed this process in 1990. In the end, the NASD panel
decided that the process was no different from other inducements offered on Wall Street (Bandler &
Varchaver, 2009). This allowed Madooff to continue to be a big player in trading. The spread was
where Bernard L. Madoff Investment Securities LLC was able to make most of their money.

White Collar Crime: Ponzi Scheme with a Focus on Bernard...
White Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff NAME College White Collar
Crime: Ponzi Scheme with a Focus on Bernard Madoff Most people, when they hear the word
"crime," think about street crime or violent crime such as murder, rape, theft, or drugs. However,
there is another type of crime that has cost people their life savings, investors' billions of dollars, and
has had significant impacts of multiple lives; it is called white collar crime. The Federal Bureau of
Investigation defines white collar crime as illegal acts which are characterized by deceit,
concealment, or violation of trust and which are not dependent upon the application or threat of
physical force or violence. Individuals and organizations ... Show more content on Helpwriting.net
...
One victim, Michael Bienes, after being asked if he ever suspected that Madoff was up to no good,
he responded, "Up to no good? He was a god. He was my life" (Lewis, 2011). Another victim
describes him as "an approachable man" that "everyone looked up to...and respected" (Lewis, 2011).
Carmen Dell'Orefice, former companion of Madoff's "best friend," Norman Levy, stated that "I think
of him as always smiling," "quiet and caring," "shy, but so sure of himself" (Lewis, 2011). "He was
able to fool a great many people for a very long time" (Lewis, 2011). Many times in a Ponzi scheme
the offender targets people they do not know personally but not Madoff. He had family, friends,
employees and even charities and non–profit organizations as investors. "He tapped local money
pulled in from country clubs and charity dinners, where investors sought him out to casually plead
with him to manage their savings so they could start reaping the steady, solid returns their envied
friends were getting" (Colesanti, 2012). "Levy invested $100,000" for Dell'Orefice, who felt
honored to be a part of the "exclusive fund" (Lewis, 2010). Sheryl Weinstein, who was a friend of
Madoffs for nearly 24 years, lost her entire savings to Madoff's Ponzi scheme. "The charitable
foundation of philanthropist Carl Shapiro had invested about 45 percent of its assets ($345 million)
in Madoff's fund" (Auerbach, 2009). It is "estimated that Madoff's scam cost Jewish philanthropies
at least $600 million, and

The Bernard Madoff Investment Scandal Essay
Bernard Madoff had full control of the organizational leadership of Bernard Madoff Investments
Securities LLC. Madoff used charisma to convince his friends, members of elite groups, and his
employees to believe in him. He tricked his clients into believing that they were investing in
something special. He would often turn potential investors down, which helped Bernard in targeting
the investors with more money to invest. Bernard Madoff created a system which promised high
returns in the short term and was nothing but the Ponzi scheme. The system's idea relied on funds
from the new investors to pay misrepresented and extremely high returns to existing investors. He
was doing this for years; convincing wealthy individuals and charities to ... Show more content on
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Eventually, his scheme reached a staggering 50 billion dollars under his management. It came to an
end after market conditions led to a considerable amount of redemptions when investors started to
take their money back. After Bernard Madoff, a former NASDAQ chairman, was arrested on
December 11, 2008, he acknowledged that his performance was nothing but the Ponzi scheme. He
pled guilty to the biggest investor fraud ever committed by anyone on March 12, 2009. On June 29,
2009, he was sentenced to 150 years in prison. Stakeholders Madoff was able to align himself with
wealthy individuals, leaders involved in foundations, business entities, and government. This gave
him unlimited access to different groups of investors. Among Madoff's Ponzi scheme victims, it is
easy to find wealthy individuals, charitable organizations, and its stakeholders, such as employees,
communities, vendors, and even the government. Investors that took the biggest losses, which was
in the billions, because of this scheme are named in the Wall Street Journal; among them are
Fairfield Greenwich Group, Tremont Capital Management, Banco Santander, Fortis, and many
others. Investors lost their money because of their lack of conscious and unwillingness to understand
or realize that it is impossible to have such high returns in a legally managed

Bernard Madoff Scandal

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