The Lie of the Century

2580 Words Mar 29th, 2016 11 Pages
| The Lie of The Century | Analysis of Bernard Madoff's Ponzi Scheme | |

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Introduction As long as the investment financial market existed, only one man was able to etched his name to the investment history as the greatest fraudster, and his name is Bernard Madoff. A brilliant fraudster that able to swindled over $50 billion from thousands of people using a type of investment fraud called "Ponzi Scheme." Using this type of investment frauds and his charming personality, Madoff stolen money from politicians, such as Senator Frank Lautenberg, famous celebrities, such as Kelvin Bacon, hedge fund directors, such as R. Thierry Magon de la Villehuchet, universities, such as Yeshiva University, banking institutions, such as Union
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The reason for Madoff's confession was because he known that his scheme will be expose sooner or later due to housing collapse in 2008. Following the follow of the 2008 housing collapse, many of Madoff's large investors have to withdraw money that they invested in BMIS. Without any money to continue his operation, Madoff's lie collapsed under its own weight, and he was forced to confess and hope for the protection of the government. The protection which Madoff hoping for was received through a 11 felony counts of guilty by court, and at 71 years old, Barnard L. Madoff was sentenced to 150 years in prison. According to an interview with Madoff in prison in 2013, Madoff said that he felt guilty for the crime he committed, for his victims, and for the suicide of his son Roger following his sentenced. (Brooks & Dunn, 2012) Madoff's Fraud Analysis According to Dr. Stephen Greenspan, a psychiatry at the University of Colorado and also one of Madoff's victims, the temptation of Madoff promised for 10% returned or more is both "small, but steady returns, high enough to be attractive but not so high as to arouse suspicious." had personally lead many to be naive enough to believed that their investment is "safe." However, the most mysterious factor that contributed to the growing of Madoff's operation was

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