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Bernie Madoff Case Summary

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This case that illustrates the unethical decisions made by Stacey McAlpine can be related to a similar case involving Bernie Madoff. Bernie Madoff is a former stockbroker who turned into a fraudster. He started his firm with only $5000 that he had saved from being a lifeguard (Biography, n.d.). Following that he served as a chairman on NASDAQ for a total of three years (non-consecutive) in the early 1990’s (CNN, 2003, n.p.). In 2008 he admitted to some of his employees that his business was just a cover for a ponzi scheme (Biography, n.d, n.p.). After he admitted this to his employees, he was arrested for security fraud and was released on bail for $10 million dollars (Biography, n.d.,n.p.). Following being released from jail, and making bail, …show more content…

It should be noted that this had nothing to do with the criminal charges that Madoff was facing because the courts would later have to make that decision. Another month passed and Madoff pleaded guilty to eleven counts of felony (Biography, n.d., n.p.). This included money laundering, false files with the SEC, fraud and perjury (Biography, n.d., n.p.). Following this plea, the judge sent Madoff to a correctional facility and then in April, the Federal Marshals seized most of Madoff’s assets (Biography, n.d., n.p.). A few months later he was sentenced by the court to 150 years in prison (Biography, n.d., n.p.). Madoff’s family also had to deal with the ramifications of Madoff’s actions including a large lawsuit against the family members who worked in the firm. Now that the whole family was being targeted, one of Madoff’s sons Mark committed suicide because of all of the financial issues going on with his father and how much trouble the whole family was in (Biography, n.d.). It was released that he stole money from those closest to him including friends of his (Biography, …show more content…

He took trusting people’s money away from them. Stacey McAlpine did the same thing. They both found a way to steal money from those who would least expect this to happen. In Madoff’s case some were friends, which stealing from someone is bad, but stealing from people who you are very close with is

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Bernie Madoff is known for a scandal that rocked Wall Street and caused financial tremors around the world. Bernard Madoff’s alleged Ponzi scheme cost folks around the world billions. Bernie Madoff stole approximately $65 billion from people. When this scandal first broke through to the public people that Bernie had stolen money from would show up at his front door and demand their money back. Many people say that Bernie pulled off this Ponzi Scheme very brilliantly.

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Madoff also gave off the impression that no just anyone could walk in and become one of his clients. This made his firm even more attractive to investors, making them feel like they were a part of something exclusive. Madoff was making a name for himself. Next he became the chairman of the NASDAQ – this gave him credibility among his peers, before his world of lies

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Bernard Madoff was a respected member of the financial community however in December 2008 it was discovered that he was engaging in a thirty yearlong Ponzi scheme resulting in a loss of some 65 million dollars in investments. Madoff had sufficient wealth of his own consequently it is difficult to discern if his choice to engage in a Ponzi scheme was based on greed or just boredom. However since the overall purpose of a Ponzi scheme is to collect substantial amounts of money it would be reasonable to conclude greed played a factor. Whatever the circumstance, Madoff saw the opportunity to commit fraud and rationalized his decision to do so.

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They finally busted him on twenty-two accounts on tax evasion. He plead guilty and was convinced he would go into prison with a minimal charge against him, he was very wrong. He withdrew his guilty plea and ended up being sentenced to eleven years. The first two years he was in a federal prison in Atlanta, but when he was busted bribing guards was moved to Alcatraz. His health began to steadily decline and he ended up getting dementia that stemmed from neurosyphilis.

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The business was buying and selling over the counter stock that was not listed on the New York Stock Exchange (NYSE). These were traded over the telephone not with the automated system. The best way to explain the Bernie Madoff situation egoism. First let’s define the word egoism.

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Consequently, implications arising from the Bernie Madoffs unethical behavior includes a variety of factors; including his abuse of both privilege and power as it is quite evident that Bernie Madoff by no mean demonstrated compassion and, his lack of controlling his impulses for monetary gain resulting in him losing the trust and confidence of the public, communities, corporations and political

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Bernard Madoff, born on April 29, 1938, has been running three successful companies until December 2008. The first one was a brokerage firm, the second was a proprietary trading firm and the third one was an investment advisory firm. The latter one has collapsed in December 2008 due to the biggest Ponzi scheme in financial history. Investors have entrusted him in total $20 billion. He pretended to invest the money in investment funds.

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A critical factor was the management of the company, to anyone outside of the company inner circle it was a black box (Economist). Madoff also made sure he was the only one who knew about these transactions, allowing his employees to continue making trades. He would even keep his family in the dark until the 2000s which would lead to his arrest. Regardless the main way he ran the company was by selecting a certain client, avoid those that asked many questions. Take only those that wanted money, not how he got allowing him the secrecy, needed to keep such large sums of money

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He intentionally misled his clients when they did inquire of how exactly he was able to get the exact profitable returns on investment he always seemed to get. However, as Joseph Coblentz states “Organizations can go for a long time while staff at any level are engaging in ethically questionable practices without being detected or sanctioned. Over time, however, word will get out” (2002, p.4). Madoff may have gotten away with his unethical business tactics for more than thirty years, but he was caught and has since paid a heavy

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In 2009 he was found guilty of orchestrating a ponzi scheme that lost $64.8 billion of investor’s money. New York Times said, “Its unraveling took tens of billions of dollars of fictional wealth from thousands of victims around the world.” And to make matters worse, this all happened during a very rough time for the United States. Kaleigh Alessandro stated that, “Amidst the nation’s most serious financial crisis since the Great Depression, we all learned of Madoff’s devastating scheme.”

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Maddoff’s son reported his unethical misconduct by operating a Ponzi scheme. “[Madoff] was accused of masterminding a Ponzi scheme on such a grand scale that the practice may well be replaced with the name ‘Madoff scheme’…” (Ghillyer, 2014, p. 133). It was not until the economic crisis in 2008, that light would begin to shed on the ill practices of Mr. Madoff; although his operations underwent a couple of detailed investigations in 1992 and 2006 (Ghillyer, 2014). Eventually, it was reported that $65 billion had disappeared, resulting in the 150-year jail sentence of Mr. Madoff (Ghillyer,

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He started his own market maker firm in 1960 and helped launch the Nasdaq stock market. It was easy to believe this 70-year-old industry veteran knew exactly what he was doing” (Yang, Stephanie). Madoff based the scheme on the exploitation of his heightened position. Like Madoff, David structures an operation to profit from using the influence of the lower class.

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