Madoff

4022 Words Jan 8th, 2016 17 Pages
A Windfall Plagued by Poor Decisions
BUOL 537: Legal, Ethical and Social Environment

ABSTRACT
Everyone in both the business and non-business sectors alike have probably heard of a financial ploy called a Ponzi scheme. However, many may not fully understand the details or how to protect themselves from such a financial risk. A Ponzi scheme is a fraudulent investment plan in which the investments of later investors are used to pay earlier investors, giving the appearance that the investments of the initial participants dramatically increase in value in a short amount of time. These types of financial schemes promise investors large interest returns if they provide money as a loan. As more new investors participate, the money that is
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There were never any mathematical equations or calculations that were shared as he considered the information proprietary and did not want competitors to copy what he had created. It was never verified if Madoff actually used this method or just entirely fabricated everything.
Accessibility
Many articles detailing the rise and fall of Bernie Madoff allude to a secret 17th floor in the Lipstick Building in Manhattan. The 19th floor in the same building was where the stock-trading operation occurred, and the 18th floor housed paperwork, computers and Bernard Madoff Investment Securities. The 17th floor was occupied by fewer than twenty employees and was called the “hedge fund” floor, accessible only by employees with the highest security clearance. Under lock and key is where the fraud actually occurred. Two computer programmers were convicted of creating phony customer accounts and two portfolio managers of concocting phony trading records. One other person was convicted of cooking the books in accordance with the scheme. Though Madoff alleged he concocted this scheme alone, it became clear pretty quickly that others had to have known what was going on. The government’s main witness was the former chief financial officer who was also responsible for producing fraudulent documents. Because all of these employees were in on the scheme from the beginning, lack of accessibility may have made it difficult for a traditional

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