Bernie Madoff Case Study

Introduction: Bernie Madoff was a well-respected financier, his company Bernard L. Madoff Investment Securities, LLC was very well known and even helped launch the Nasdaq stock market. Madoffs company was well trusted and he even had celebrity cliental such a Steven Spielberg, Kevin bacon, and Kyra Sedgwick. Madoff came from a low income family however, he was able to start his company from getting a $50,000 loan from his in-laws and he using money that he had saved from side jobs such as lifeguarding and installing sprinkler systems to found his company. The successfulness of Madoff’s company came from the company’s ability to adapt to change and us modern day computer technology. As his business grew he stated employing family members to help “His younger brother, Peter, joined him in the business in 1970 and became the firm 's chief compliance officer. Later, Madoff 's sons, Andrew and Mark, also worked for the company as traders. Peter 's daughter, Shana, became a rules-compliance lawyer for the trading division of her uncle 's firm, and his son, Roger, joined the firm before his death in 2006”(Bernard Madoff Biography 2016) Unfortunately on December 11th 2008 Bernie Madoff became well known for a whole new reason. He had been accused of performing an elaborate Ponzi scheme and he had been reported to the federal authorities by his own sons. A year later he admitted to the investigators that he had lost $50 billion dollars of his investors’ money and pled guilty to 11

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.

To me, it had been no time since the world was affected by the 9/11 attacks and then all of a sudden Bernie Madoff had schemed hundreds of thousands of people out of billions of dollars. Once again, I had to sit by and watch and the consequences unraveled. Billions of dollars had been taken that the victims would never see again, and despite Bernie Madoff’s conviction, nothing else would be done to relief there struggles. I understood that once someone had lost everything, just seeing the man that had caused it sent to jail was just not enough. This scheme was another occurrence I did not understand how it had been going on for so long with no one doing anything. Bernie Madoff got sent to prison. He was never forced to pay the money back, yet he was not allowed to keep it, so all that money went where? For all I knew the thousands of people that lost all they had would never see a dime of it. Madoff’s net worth is approximately $-17 billion (yes that is a negative, he was in debt from the scam), yet he had taken an estimated $65 billion, which does not add up (Bernie Madoff Net Worth). Having never been very well off, I knew that all it would take is a

Madoff required a $100,000 minimum to invest, was by invitation only, and made each client feel like they were his only client (Ferrell, Fraedrich, & Ferrell, 2018). He was a highly successful business man who was respected and trusted for his knowledge of investments. Madoff had clients begging him to invest their money. The reason, he claimed he could make 10 to 12 percent on returns for investors no

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.

Bernie Madoff was raised watching his parents Ralph and Sylvia Madoff run a business that was not successful in the financial trading world. That company was named Gibraltar Securities. Due to the fact that Sylvia failed to accurately report their company’s financial condition, the SEC closed the business in 1963 and started its investigative proceedings to determine if charges were needed to be

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

Bernie Madoff ran what is by extreme measures the largest Ponzi scheme in world history. His investment company was multinational and at its height handled more than five percent of the total trading volume on the New York Stock Exchange. Ponzi schemes are operations in which the operator pays investor returns from new capital paid to the operator by new investors rather than from profit earned. Ponzi schemes often begin as legitimate investment businesses until the legitimate investment business fails. Much is still debated as to when Bernie Madoffs operation become a Ponzi scheme. Bernie Madoffs operation was dependent on feeder funds to bring in additional money to help the scheme along. Going back to the earliest days of the Madoff fund two

“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

Then again, individuals these days who have worked for Madoff before, can't discover a vocation. More than 2,200 individuals had contributed generally $20 million with Madoff. In the days after the embarrassment broke, most casualties thought they'd never observe any of their cash. What I see is that the media needs to unequivocally reveal the insight into the general population who are getting back a part of the cash they gave Madoff. The public have got to point out the fact that nothing can bring back the millions that cash ought to have been acquiring over decades, interest and investment earnings Madoff misrepresented in month to month articulations to his financial

Bernie intently accepted large sums of funds from investors with the knowledge that he was not going to make legitimate investments with his the stackholders money. Bernie Madoff’s was conducting his business practices off of maximizing profits for himself over twenty years, which he intentialy defrauded his clients of almost sixty-five billion dollars. It is in my opinion that Bernie Madoff’s apparently knew what he was doing when he was engaging in un-ethical practices. When Madoff pled guilty to all charges in March 2009, which includes securities fraud, mail fraud, false statements, false filings with the SEC, investment advisor fraud, wire fraud, money laundering, and theft from an employee benefit plan, I believe that he completely understood that his scam would be exposed at some time.

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

All of that money is assumed to be gone”. Others try to pinpoint just how did Mr. Madoff lose all of that money? Most really don’t know and can’t say for sure. According to the Wall Street Journal, Mr. Madoff indicated that he traded stocks and options through European counterparties, instead of his own trading firm,. But the records reveal that investigators don’t believe that to be true. There is no evidence that Mr. Madoff lost or made large sums of money on good or bad trades, or that he traded at all. In some recent cases of spectacular losses, the causes were clear. There were wrong-way bets on oil prices, for instance, or mortgages that turned out to be toxic, but there is no indication that Mr. Madoff made any such bets. Nor are there signs that he simply wasted the money on a lavish life style. While he did enjoy a lifestyle of the rich and famous life, he owned a stock-trading business that could have provided him with enough money to fund it. Many have asked if there is any money left over to repay all of the swindled investors. Since most don 't know if he lost any money or how much he ever had, investigators don 't know what might be leftover, or where it might be. Investigators in the SEC and in the Securities Investor Protection Corp. are looking for the money by trying to follow the money trail. However it is probably safe to say if he was smart enough to outsmart thousands of investors out of their money, he is probably smart

This fine line was clearly crossed by Madoff as he put his self interest in front of others knowing that he was doing wrong. It would appear that anything for personal gain, right or wrong, was how he chose to live his life and his

Bernard Lawrence “Bernie” Madoff, an American fraudster and a former stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market. Bernie admitted the Ponzi scheme that is considered the largest financial fraud in United States history. His end result of money leading to happiness landed him in jail owing $64.8 billion, based on the accounts of Madoff’s 4,800 clients on November 30, 2008. Madoff stated “I began the Ponzi scheme in 1991” (Kolbert). He confessed he never made any legitimate investments with his clients’ money during this time. He deposited the money into his personal business account at Chase Manhattan Bank. On March 12, 2009, Madoff pleaded guilty