Bernie Madoff Case Study

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Case Study: Bernie Madoff Eric Ranzinger Organizational Behavior – OL 500 Jascia Redwine Abstract Bernie Madoff was one of the top dogs on Wall Street for over 20 years. He managed tens of billions of dollars in client’s funds. His firm was one of the most consistent with profitable returns. When most others were reporting losses during the recession, his firm was consistently reporting net gains. Many celebrities even entrusted their money with Madoff because he was such a reputable name on Wall Street, being the former head of NASDQ. In December of 2008, Madoff turned himself into the authorities because his operation was just a giant Ponzi Scheme. His investors were scared of losing more money in the recession so they tried…show more content…
Madoff was such an established and respectable name on Wall Street that no one thought that he would need to perform such an elaborate scheme. Everyone should be treated with the same caution. Since 1993, his firm was the only one to never report a down month. His returns were not always the highest, but they were way too consistent. They were usually somewhere between 10 & 16 percent. The problem is the market fluctuates much more than that. The market has highs of 25% and lows of below 0. That is just the way the market works. Madoffs numbers were too consistent for it to still be legal. According to Harry Markopoulos, “The fact that there was something strange going on with Bernie Madoff’s operation was not a secret. People had been questioning his claims for a long time. They believed that his returns were accurate, but given his unique access to market information, he was generating them illegally.” (Markopoulos, 2010) Madoffs hedge fund operated in secrecy. His clients were never given any information on how he achieved his returns. He would not divulge any information to the public or his clients regarding his strategy. If he was operating one of the most successful firms on Wall Street, then why did he feel the need to fly under the radar? You would have thought that he would want the public to know of his strategies so more people would invest in

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