Bernard Madoff Research Paper

For decades, Bernard Madoff had been known as a highly successful icon in the Wall Street investment arena. Mr. Madoff had created an infallible reputation for himself by serving on government stock market regulation advisory boards, being chairman of the NASDAQ on three separate occasions, a member charitable boards, and even created his own foundation. He positioned himself as a sought after commodity to the wealthiest of clients, by producing consistent returns on investments of 10-12%. On any given day in the 1990s, Madoff's empire could be responsible for 10% of the days NASDAQ trading. He had created an environment to which his investors felt elite by simply being involved with his firm. By surrounding himself with family members at the

Many of his clients were already abundantly wealthy and seeking a stable platform to shelter their money. His scheme met their needs and his. Madoff's proposal also spoke to their egos, in the form of being part of a program that provided exclusivity. Each felt as though they were in bed with the 'best of the best'. How could they go wrong when some of the biggest names in the world were securing their wealth with Madoff? It must be a smart play if the wealthiest and most intelligent are doing it. He even had an ex attorney for the SEC facilitating investment meetings. Why would they ever consider turning down the opportunity to have such a longstanding, brilliant man manage their

He served as an SEC advisor. He had conducted suspected legitimate business without a blemish for decades. His influence within the arena had to once again speak to his credibility, thus diminishing the desire for the SEC to dig deeper. A man of that stature and prominence had to be vicariously protected from scrutiny, and questioning his ethics and character could pose a certain risk. After all, Madoff is one of the craftsman of the NASDAQ. In a 2008 article by the Washington post, Donald C. Langevoort, a Georgetown University law professor who specializes in securities regulation, and also served as an SEC advisor with Madoff was quoted as saying, "Bernie had a good reputation at the SEC with a lot of highly placed people as an innovator as somebody who speaks his mind and knows what's going on in the industry. I think he was seen as a valuable resource to the commission in its deliberations on things like market data" (Applebaum & Hilzenrath,