Bernard L. Madoff - Modern Ponzi Master

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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

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