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Bernie Madoff Essay

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Some of the parts that made Bernie Madoff attractive to people was his early use of technology and computers of the changing times. He was also attracting the attention for his ability of having 10 percent yearly returns on investments; so people thought. Madoff started out with 5,000 dollars of his own money, plus he borrowed 50,000 dollars from his father in law. He father-in-law a retired CPA. By referrals from his clients his business started to grow. 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 …show more content…

The Investment Advisors Act of 1940 is one of the four laws that got in their way. According to an article in the Rolling Stones Magazine that was published in May 2013, a lawyer named Kathleen Furey worked at the New York Regional Office, which is the agency with jurisdiction over Wall-Street. Furey could not investigate investment managers, like Madoff. Under this law her Regional Director told her “we do not do IM cases” (“Bernard Madoff Biography,” 2017). Madoff feel under the Investment Act of 1940 and the Investment Company Act of 1940. Furey finally made some headway within her department under the Investment Advisor Act, section 206. This would later on help her in the case of Bernie Madoff. People were calling in with tips, but the SEC had their hands tied so they never followed up on any of the leads. When it finally came out in public in December 2008 it made the SEC look really bad. Cases like Madoff’s did not get much attention because it stayed buried under the Investment Managers

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Madoff had Complicit knowledge of the fraud that he was obtaining on doing on his client base that they were oblivious to his actual fraudulent Securities, that there actually was no project nor any Securities that they were trading on the behalf of these clients that in an sense it was almost like a pyramid scheme that he would obtain funds from the individual to pay off those investors with the 20% that he guaranteed to give them and then obtained the other 20% from new clients. Explain to them the operation and from the market of how mr. Madoff had actually set out to defraud the clients as well as the Trade Commission U.S. Securities from Bernie L Madoff in the defendants forward from the chairman and head Of the board directors for the NASDAQ stock market interest in in the marketing and maintaining it on Operating the records of fair deals and higher ethics standards that he had been tricking them with Giving them fraudulent information on the firm's activities. The supervisor also advised FBI that on January 7th, 2008 That Mr. Madoff Misrepresented His Holdings and its client base to the SEC Stating that he had between 11 and 25 clients and total approximately 17.1 billion dollars and assets under his management However, he had less clients and he only had approximately 7

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Madoff Investment Securities, LLC. Madoff’s investment firm began through word of mouth and assistance from his in laws and started out somewhat slow before taking off with big mouth clients starting to join in the firm because of his parent’s success in the industry. His company began to take over the New York Stock Exchange because of his percentages offered to customers were unmatched by all his competitors at the time. People were coming from all places to invest with Madoff and his firm to the point where just about everyone knew who he was, and his firm began to take off. “Madoff began to use technology to get the upper edge on his competitors and became chairman for three terms of the National Association of Securities Dealers Automated Quotations” (Biography 2017).

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