Bernard Madoff

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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…
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

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