What Was Madoff's Ponzi Conspiracy?

Facts: In November 2008, the parties signed an employment agreement providing that Relator was to serve as the director of the school for the 2008-09 school year. The title of the agreement states the dates July 01/2008-June 30/2009. "The first sentence of the agreement lists the administrative positions to which the agreement applies and states, "This is a general at will agreement."(Ellis vs. BlueSky, 2010). Yet the agreement provides that "[p]ositions will automatically

Many times in a Ponzi scheme the offender targets people they do not know personally but not Madoff. He had family, friends, employees and even charities and non-profit organizations as investors. “He tapped local money pulled in from country clubs and charity dinners, where investors sought him out to casually plead with him to manage their savings so they could start reaping the steady, solid returns their envied friends were getting” (Colesanti, 2012). “Levy invested $100,000” for Dell’Orefice, who felt honored to be a part of the “exclusive fund” (Lewis, 2010). Sheryl Weinstein, who was a friend of Madoffs for nearly 24 years, lost her entire savings to Madoff’s Ponzi scheme. “The charitable foundation of philanthropist Carl Shapiro had invested about 45 percent of its assets ($345 million) in Madoff's fund” (Auerbach, 2009). It is “estimated that Madoff's scam cost Jewish philanthropies at least $600 million, and

Convictions of the Bernie Madoff conspirators prove the Ponzi scheme could not have been the work of one person. Furthermore, the conspirators each played a critical role in facilitating the Ponzi scheme and concealing it from regulators, and auditors. For instance, Annette Bongiorno, was employed for Madoff for approximately 40 years as his secretary (Lappin, 2014). Consequently, Bongiorno was charged with manufacturing the false statements sent to clients that indicated they were worth a lot more than they actually were. Moreover, Bongiorno transferred $50 million of client’s funds into her own private account (Lappin, 2014).

Bernie Madoff was one of the most prolific Ponzi-scheme artists in history. Madoff schemes netted him millions of dollars. Mr. Madoff used his BMIS Bernard L. Madoff Investment Securities a New York Limited Liability company, to commit fraud, money laundering, and perjury. This is just a few things that Mr. Bernard Madoff has done to many innocent investors, who believed in Mr. Madoff, and everything he stated. Due to Mr. Madoff’s action he has changed so many people’s lives. Some have lost everything, some committed suicide, and others just humiliated by Mr. Madoff. This paper is to tell you about Mr.

Madoff was able to align himself with wealthy individuals, leaders involved in foundations, business entities, and government. This gave him unlimited access to different groups of investors. Among Madoff’s Ponzi scheme victims, it is easy to find wealthy individuals, charitable organizations, and its stakeholders, such as employees, communities, vendors, and even the government.

The Ponzi scheme as a whole was very unethical. A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. (Ponzi scheme, 2011) Madoff was taking investor's money and investing it into unregistered securities. When investigating these assets, they were found to be missing. This unethical act of defrauding his investors out of millions of dollars led to the charge of securities fraud.

Bernie Madoff started his own market maker firm in 1960 and was an influential individual in the startup of the Nasdaq stock market. He also was on the board of National Association of Securities Dealers and an advisor to the Securities and Exchange Commission on trading securities. This extensive and impressive background in the investment industry allowed him to build and maintain the largest known Ponzi scheme is United States history. Under this Ponzi scheme, Madoff used the money coming in from new investors to pay the previous investors the promised 50% returns in 90 days. Investors would buy into Madoff’s investment plans and invest more money while more investors would join. The exact start date of Madoff’s Ponzi scheme is unknown,

Madoff's sons were highly suspected of being aware of the fraud, but they both adamantly denied this, and charges were never brought because one son killed himself while the other died of cancer. A federal investigation was on the cusp of charging the son who died of cancer with tax evasion resulting from the Ponzi scheme before his death this year it was

This paper introduces Bernard L. Madoff a fraudster who orchestrated a multi-billion dollar Ponzi scheme. The paper discusses elements that make up a Ponzi scheme and explains what a Ponzi scheme is. The paper goes on to introduce some of the victim’s and examines some reasons why someone might fall victim to a Ponzi scheme. The paper describes the three elements making up the fraud triangle and how they relate to the fraud and the fraudster. This paper covers Bernard Madoff’s background and history and how he committed the fraud analyzing the fraud triangle. The paper describes ways to correct the issue, accounting principles violated, and recommendations for a fix. Finally, the paper looks at internal and external controls violated and ends with a conclusion.

Bernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960’s through the 1990’s, Madoff’s success and business grew substantially, mainly from a closed circle of known investors and friends through word of mouth. In the 1990’s Bernard L. Madoff Investment Securities traded up to 10 percent of the NASDAQ on any given day. With the success of the securities business, Madoff started an illegal money-management business, promising his investors consistent returns from 10-12 percent, unheard of returns at the time, which should have tipped off most investors that something was amiss.

A Ponzi scheme of this size and magnitude probably won’t happen again. The Ponzi has been around since the beginning of time. It has been documented to be in existence since 1920. The Security Exchange Commission (SEC) has put several detectors in for the Ponzi scheme. This should be labeled a white-collar crime but should be punished as a blue-collar crime. The only to ensure that this does not happen again is to get rid of all the thieves in the world. That will be difficult task.

One of the schemes includes Bernie Madoff’s Ponzi scheme. Bernie Madoff was the head a huge investment firm that catered to thousands of people. Bernie claims that the firm was “just one big lie ” which was an understatement, for the huge stunt that he managed to pull off. Over the years, Bernie had collected over fifty billion dollars for his personal investors. To keep the fraud hidden from the public he used a famous con move known as the Ponzi scheme.

I am baffled as to how long Bernard Lawrence Madoff’s Ponzi scheme lasted. He started Bernard L. Madoff Investment Securities LLC in the summer of 1960, and did not get caught until he turned himself in on December 10, 2008. There are several things he did to keep himself from getting caught, and several things that could have been done to figure out something odd was happening. Two major points aside from the questions that I’m doing to dive into are that Friehling was not independent and the SEC should have looked into Markopolo’s accusations.

What is right or wrong? People base their values of right and wrong on what they have learned from their experiences (Ferrell, Fraedrich, & Ferrell, 2018). What one person sees as wrong, may be a normal for another. Most people are taught to work hard, save money, and invest for a future retirement. However, when it comes to money, some people lose all principles and standards of behavior. There were several ethical issues in the Madoff case. They include: stealing, cheating, lying, misrepresentation, and deliberate deception. Madoff used the Ponzi scheme or the money pyramid to make his money. In the Ponzi scheme, money was taken from new investors and given to existing customers as earning without being invested. Was this right or wrong? Throughout this case study ethical concerns can be seen on both sides, the investors and Madoff’s.

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