Bernard Madoff

Bernie Madoff, son of Ralph and Sylvia Madoff, grew up in a modest three-bedroom home in Laurelton, a small middle class area outside of Queens, New York. Little is known about Bernie’s parents, except each had one or more issues with the government. Ralph, had a tax debt in excess of $13,000, placing a lien on his home, assessed in 1956 and not paid until 1965. Sylvia was part of Securities and Exchange Commission (SEC) proceedings in 1963 to determine if broker-dealers of Gibralter Securities failed to report financial conditions, which could revoke their registrations. However, in 1964, the SEC dismissed the proceedings with what appeared to be a deal for these identified individuals to stay out of the business.

What is right or wrong? People base their values of right and wrong on what they have learned from their experiences (Ferrell, Fraedrich, & Ferrell, 2018). What one person sees as wrong, may be a normal for another. Most people are taught to work hard, save money, and invest for a future retirement. However, when it comes to money, some people lose all principles and standards of behavior. There were several ethical issues in the Madoff case. They include: stealing, cheating, lying, misrepresentation, and deliberate deception. Madoff used the Ponzi scheme or the money pyramid to make his money. In the Ponzi scheme, money was taken from new investors and given to existing customers as earning without being invested. Was this right or wrong? Throughout this case study ethical concerns can be seen on both sides, the investors and Madoff’s.

Bernie Madoff was one of the most prolific Ponzi-scheme artists in history. Madoff schemes netted him millions of dollars. Mr. Madoff used his BMIS Bernard L. Madoff Investment Securities a New York Limited Liability company, to commit fraud, money laundering, and perjury. This is just a few things that Mr. Bernard Madoff has done to many innocent investors, who believed in Mr. Madoff, and everything he stated. Due to Mr. Madoff’s action he has changed so many people’s lives. Some have lost everything, some committed suicide, and others just humiliated by Mr. Madoff. This paper is to tell you about Mr.

But there is one person who has come forward. Frank DiPascali, the former financial chief, became the star witness against Bernie Madoff. Mr. Depascali was very forthcoming in giving information and he detailed how the scheme was able to be hidden for so long, and how it all comes down to technology. What? How does technology have anything to do with hiding a pyramid scheme? Well, Bernie had an emergency operations building that housed different versions of computers, software programs, printers, copiers, paper, company logos, and company

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

Bernard Madoff founded Bernard L. Madoff Investment Securities in 1960, with an investmento of only $5,000 earned as a beach lifeguard and a lawn sprinkler installer. He was seen as a genius and the most sympathetic and friendly broker in the country. Madoff became the responsible for the largest financial scam in history after applying the most jaded of financial scheme. A stroke of billions of dollars and harmed many customers. But after 20 years of this scam, he admitted having ridden a giant pyramid scheme type after being arrested. The scheme is to pay older clients with money from new investors, without producing real income. Madoff even became chairman of Nasdaq, the

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

“Mr. Madoff 's crimes were extraordinarily evil." "The breach of trust was massive. “I simply do not get the sense that Mr. Madoff has done all that he could or told all that he knows. “These are all quotes given by the US district attorney Denny Chin that give a mere glimpse into the horrible impact that Bernie Madoff has had on 21st century American society. Madoff cheated investors worldwide in the biggest Ponzi scheme in American history stealing over sixty five billion dollars from his clients .His enormous ponzi scheme was essentially evil genius and because of this incredible con Madoff has become the face of fraud in the 21st century and someone who exemplifies the dark side of wall street. This is shown through the incredible

Scott Rothstein was convicted of the 4th largest Ponzi scheme in history with an estimated 1.2 Billion dollars defrauded from investors. The scheme was predicated upon purchasing fabricated "structured settlements, which involved people selling large settlements in legal cases for lump sums of cash.

Bernie Madoff started his own market maker firm in 1960 and was an influential individual in the startup of the Nasdaq stock market. He also was on the board of National Association of Securities Dealers and an advisor to the Securities and Exchange Commission on trading securities. This extensive and impressive background in the investment industry allowed him to build and maintain the largest known Ponzi scheme is United States history. Under this Ponzi scheme, Madoff used the money coming in from new investors to pay the previous investors the promised 50% returns in 90 days. Investors would buy into Madoff’s investment plans and invest more money while more investors would join. The exact start date of Madoff’s Ponzi scheme is unknown,

Madoff Securities Fraud / Ponzi scheme was one of the article I read and I thought that it was interesting because he maculated so many peoples including the employees of the company invested their life saving, and he fraudulent stolen over 50 billion dollars before he was caught. Because he was high in power he was allowed to change records submit important document and get funds without having the approval signatures that was needed. Madoff was able to use the mail, wire communication to launder money from the employees benefit funds to different location and no one question his unethical behavior within the company. He gave false information to the (SEC) Securities and Exchange Commission for

Ponzi schemes are not uncommon, unfortunately, but they always collapse eventually. Learning to avoid situations like this in the future is the key to stopping unethical business practice, awareness is important. Madoff was greedy and took advantage of his prestige, business students would benefit from studying his life and career.

To combat this assumption it turns out large amounts of money of the value of $300million was invested in Bernard Madoff accounts in the form of pension funds. Some officials knew that the unscathed performance of Madoff securities were too good to be true as their prices consistently climbed up in spite the financial crisis. However, still they pawned its own shareholders’ funds with the hopes of jumping on the same band wagon as Madoff and reaping further profits. Another angle at probing the case was that the CEO, directors as well as executives were only looking out for themselves. Evidently they had direct benefits in the form of handsome compensation packages for retaining high profile clients such as Madoff and Wise which

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.

Operated through a complex, cryptic structure Bernie Madoff, CEO of Bernie L. Madoff Investment Securities (BMIS), perpetuated the most embellished Ponzi scheme the world has ever seen. The basis of the securities fraud that took place approximately between 1991 – 2008 was influenced by Bernie Madoff’s reliance upon an unqualified staff, outdated software, organizational seclusion, a personal halo effect, and weaknesses in the regulating body. Madoff had the confidence of the public, yet to pull off such an elaborate scheme, he relied on a startling number of family members, vital accomplices working on the illegal trading floor such as Frank D. Pascali, IT staff members, and a separate BMIS branch of international employees