Bernie Madoff Scandal

1197 Words Jun 23rd, 2018 5 Pages
Bernard Madoff was born in Queens, New York to an honest Jewish family. He graduated from Hofstra University with a Bachelor of Arts in political science. In 1960, Madoff opened up Bernard L. Madoff Investment Securities LLC, a penny stock trading company founded with $5000 that Bernie earned by working as a sprinkler installer and lifeguard. He grew his firm with the help of his father-in-law, Saul Alpern, into at one point the largest market maker at the NASDAQ. Madoff Securities started off making markets via the National Quotation Bureau’s Pink Sheets; but in order to gain an advantage on competing firms, began using innovative computer software that projected quotes in seconds rather than minutes. This system is now commonly referred …show more content…
Madoff stole from anyone who was willing to give him money such as, family and relatives, banks, hedge funds, charities, universities, and individuals.
Madoff admitted to his faults but what he didn’t admit was that he had multiple accomplices. Madoff said he acted alone, but several investigations and convictions prove other wise. Madoff’s right hand man, Frank DiPascali Jr., plead guilty to 10 charges and stated he “ended up being loyal to a terrible, terrible fault.” DiPascali Jr. participated in the scheme for over 20 years. Another significant person in the scandal was Madoff’s accountant and the firm’s auditor, David Friehling. Friehling also plead guilty to numerous charges and stated that he was “unaware of the scandal going on around him.” Bernie’s brother, Peter Madoff, was also involved in illegal activity at Madoff Securities. Peter admitted he: avoided paying taxes on tens of millions of dollars in income. He put his wife on the firm’s payroll even though she never worked there. He submitted false filings to securities regulators. But he also emphasized that at no time was he aware that his brother, Bernard, was orchestrating the largest Ponzi scheme in history, wiping out $65 billion in paper wealth and shattering lives around the globe. (Lattman)
There were multiple red flags that caused suspicion about Madoff’s business. Harry

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