Americans are taking to the streets in anger at bankers for ruining the economy, for CEO’s for taking bailout money as bonuses, at the stock market for demolishing their retirement plans and into this arena waltzes public enemy number one, financial fraudster Bernard Madoff. This singular man gives a name and a face to all that went wrong and a focus for everyone's anger. America thought the boom would last forever. Bernard Madoff, founder of Bernard Madoff Investment Securities, was charged with securities fraud after he allegedly told senior employees that his investment operations were fraudulent (Computer Weekly 2009). For the last twenty five years or so throughout the world there has been an enormous boom and their hasnt been anything …show more content…
Some were so angry that they started showing up at Madoff’s front door demanding their money back. Most of these investors all happened to be introduced to Bernie Madoff by a friend. Many people who have tried to place money with Madoff couldn't. One would have to know a friend of a friend who may have had some sort of influence for Madoff to accept an account with that person. This was the utmost classic ponzi scheme in more ways than possible. This Madoff ponzi scheme is a simple swindle whereby one set of investors are paid unreal returns out of money received from another. This type of scheme is named after Carlo Ponzi who perpetrated fraud in Boston during the 1920’s. Ponzi was a small timer, shady, underground character. He arrives to the United States from Italy already a convicted smuggler, forger and vegetable peddler. Ponzi was offering to double peoples money in ninety days purportedly through postage reply coupons. He would then take these coupons or stamps from one country and sell them in the United States and enormous profit. This was prepostures because there wasn't enough of these coupons to support and multi million dollar investment venture. But it didn't matter because ponzi schemers tend to be very charming. And as for Mr. Ponzi himself, he had that charisma. The key to perpetuate a ponzi scheme however, is to keep attracting new levels of investors. Both Ponzi and Madoff had a lot in common. These were two men who recognized what people wanted and they found a way to satisfy