Bernard Madoff was a multibillion dollar stockbroker. Born on 1938 in New York. He graduated from Hofstra University in Long Island in 1960, with a BA in political science. He used $55,000 dollars to invest in his own firm called Bernard L. Madoff Investment Securities, LLC. Madoff’s investments investors list grew because of his guaranteed 10% annual percent. Madoff would trade penny stocks. Which is not illegal but his investments were. Madoff's firm would deposit the investors’ money into an account. Madoff would then have his employees generate a paper trail of where the money should have had been invested but was not. Reverse Engineered Trades, was just a method he used to provide trading reports, as if the trade was made. Madoff withdrew money from his bank account if the clients asked for funds. Clients never questioned him because they always received an average of 10 %- 15% of returns. …show more content…
He admits his firm is part of what’s known a Ponzi scheme. His own children who work in his firm advice the authorities about his father’s scheme. In which he is then arrested. He lost about $50 billion dollars of his investors, and was found guilty to eleven felonies and is now serving a 150 years sentence. Charles Ponzi was born in Italy on 1882, at the age of 21 he arrived to Boston. Ponzi was incapable of keeping a job, he would often get fired for theft or for fraud. The jobs he often jump from where unskilled jobs such as dishwasher, bank teller, and cashier. On 1907 he moved to Canada and starter working for Banco Zarossi, with as a teller. A year later he was sent to prison for forging a check. Ponzi was often in trouble with the authorities and was unable to keep a job. After a few other run in’s with the law, he then married and in the same year 1918, he discovered his