A Report On The Ponzi Scheme

1627 Words Dec 1st, 2015 7 Pages
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 this fraudulent crime in regards to the nature of the scandal, key players and the status of Bernard L. Madoff Investment Securities LLC before and after the Scandal.

Recommendations Include:
• Visibility of information to investors, how funds are used
• Investment reports verified by 3rd party professional accountants
• Restriction on the use of funds

Since the ascent of money, different techniques have been developed and carried out to fool people of their assets. These methods have evolved together with advances in technology, and some have proved to be more efficient than other. One of the largest of these schemes ever carried out occurred in modern times in the United States, it was uncovered as…

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