The Case of Bernard Madoff

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Business Ethics

Final Report The Fraud of the Century: The Case of Bernard Madoff

Group No. 5: International Students

麥立妲 98370389
魏維德 98370390
巴玉連 98370452 December 2011


We chose Bernard Madoff’s case because we thought that we could relate his case to many unethical behaviors. The analysis can be made on decision making and lack of ethical training which we think is an important topic to focus on this course.

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
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In July 1989, Noel and Tucker give Madoff $1.5 million to manage and follow up the in January 1990 with an additional $1 million. In November 1990, Fairfield Greenwich starts the Fairfield Sentry Limited Fund, its $4 million entirely managed by Madoff. "Once they created Fairfield Sentry to invest exclusively with Madoff, that is when things really started to accelerate," recalls Sherry Cohen, Walter Noel's former assistant.

Corporate Governance

Corporate citizenship involves acting on the firm’s commitment to the corporate citizenship philosophy and measuring the extent to which it follows through by actually implementing citizenship initiatives.

The Federal Sentencing Guidelines for Organizations (FSGO) provides incentives for developing an ethical culture and efforts to prevent misconduct. The Federal Sentencing Guidelines are rules that set out a uniform sentencing policy for individuals and organizations convicted of felonies and serious (Class A) misdemeanors in the United States federal courts system.

The fiduciaries should have acted on behalf of the best interests of the organization.

It is very clear that Bernard Madoff’s corporate governance wasn’t effective at all. They didn’t have any governance mechanism for identifying risks and for planning for recovery when mistakes or problems occurred.

Madoff had the opportunity

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