Madoff

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http://www.sec.gov/answers/ponzi.htm Who is Bernie Madoff? Bernard L. Madoff, who is currently serving a 150-year sentence in federal prison, orchestrated a multi-billion dollar Ponzi scheme that swindled money from thousands of investors. Unlike the promoters of many Ponzi schemes, Madoff did not promise spectacular short-term investment returns. Instead, his investors’ phony account statements showed moderate, but consistently positive returns — even during turbulent market conditions. In December 2008, the SEC charged Bernard Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for the multi-billion dollar Ponzi scheme he perpetrated on advisory clients of his firm for many years. The…show more content…
Issues in management practices, like conflict of interest, can be raised from this debacle. Madoff developed a culture of individualism and arrogance that silenced any insurgence. His communication and manipulation skills helped him generate income for himself, while keeping any suspicion of fraud away. Formal control mechanisms and transformational leadership skills may have avoided such an unethical attitude. Madoff’s scam has been impacting several charities, private investors as well as the health of the financial markets. Madoff’s low moral development stage and his well oiled reputation management skills were reasons for his long lasting success. Bernie Madoff When it comes to committing crimes, the disparity between the wealthy and the poor in the United States has never been more evident than now. Most white collar criminals get to stay out of prison on bail while other accused people are often sent right to jail to await trial. Bernie Madoff, former chairman of the NASDAQ stock exchange, accused of stealing over $50 billion from investors, should have been awaiting trial in prison rather than at home in his $7 million Manhattan apartment on the Upper East Side. The devastation of his crime has forever affected the lives of thousands. There are three reasons why Bernie Madoff should have been in jail from day one.

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