The Ponzi scheme lead by Bernard Madoff was one of the largest Ponzi schemes in history. According MSN money, the SEC knew about the potential fraud in 1992 but were unable to catch him until he confessed in the year 2008.
“Madoff did not steal the alleged $65 billion, in fact, he actually stole $20 billion in principal fund that were invested into the firm. Madoff is arrested on one count of securities fraud for allegedly operating a multibillion-dollar Ponzi scheme from his investment advisory business. He is released on $10 million bail. In the following year, things began to deteriorate after clients requested a total of $7 billion back in returns. Unfortunately for Madoff, he only had $200 million to $300 million left to give.
About $823.6
…show more content…
One of the reasons was, Madoff was well-known by a lot of investors, he marketed his business by word of mouth, which helps him create the scheme.
In short, Madoff ‘s firm offered low risk and high returns, which was great news and opportunity for investors. The firm returned its clients up to 13 percent rate, for the scheme to run its course, it must attract new client’s deposits so that the new cash can be used to pay the returns from the investments to earlier investors, which made the firm and investment real.
Yes, justice has been served in this case. Bernie Madoff received a sentence of 150 years, which I believe was the most extreme sentence permitted, the fact that he was trial as a criminal, which he was, it serves as an example to other businessman or professional out there trying to do the same, con investors or just anybody, you will get caught and die in prison for there is no short-cut. Madoff’s lawyer, employees and accountant also received about 30 years in prison for participating into the scheme. For some people, like the victims, those who lost a billion of dollars through the Ponzi scheme, for them, justice wasn’t fully solve, for they did not get their money back and are still recovering from the