The Illegal and Unethical Activities of Bernard Lawrence 'Bernie' Madoff

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Bernard Lawrence Madoff, a former chairman of the NASDAQ Stock Market and founder of Bernard L. Madoff Investment Securities, was one of the few NASDAQ market-makers who competed with the New York Stock Exchange, by trading stocks listed on the Big Board. Through the Cincinnati exchange, the Madoff was a pioneer in electronic trading and publicly spoke of the need to use technology to transform the inefficient and sometimes shady over-the-counter stock market (Monica Gagnier, 2008). But Madoff became famous for a very different reason on December 10, 2008 when Madoff 's sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme. On March 12, 2009, Madoff pleaded…show more content…
I know, I myself, if I was investing 5 million to Madoff who supposedly told me he could earn an unusually higher return on my money than other investors, I would want to know exactly how he was doing it. A financial risk manager might have been able to stop this from even happening. They might have seen that Madoff’s investment company was making substantial returns that were significantly higher than everyone else in the same market, and was doing it consistently year after year, then they might have saw that something just didn’t add up. 4. Describe three ways private investors might have better protected themselves from risk. It is an easy job to find thousands of financial agencies who are ready to serve clients high benefits on their investments, but it’s a tougher job to sort out the reputed and reliable ones among them. So before investing their hard earned money, they should survey the market first to know the agency 's reputation. After doing their research they should better protect themselves by: 1.Using a Certified Financial Planner which have more training than others and must adhere to a strict Code of Ethics mandated by the Financial Planning Association. 2. Sticking with investments they can understand and making sure their advisor can explain and you can understand

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