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Bernie Madoff Essay

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1- What is the company/person in question here? Provide a brief description of its business operations?
Bernie Madoff
Bernard L. Madoff Investment Securities LLC
Early in the 1960s, Bernie Madoff worked as a penny stock trader on Wall Street. In actuality, Madoff presided over the NASDAQ exchange in 1990. By the 1990s, 10%–15% of all trading orders for the New York Stock Exchange were processed by Madoff's brokerage firm. Madoff was also well-known for supporting various charitable groups and generously funding Democratic Party candidates in the US.

2- What kind of fraud happened? Does this type of fraud have a technical term? Explain the fraud that happened. ponzi scam.
The term "ponzi scam" refers to illegal business practices that use …show more content…

In a Ponzi scheme, money simply moves up a ladder without many or any genuine investments being made.

3- Who are the victims / stakeholders in this fraud situation?
A wide range of individuals and organizations, including wealthy individuals, charities, pension funds, and investment firms, were among Bernard Madoff's Ponzi scheme's victims. Many of Madoff's victims had been with him for a long time, had invested with him, and had come to trust him. Among the most notable victims are:
 Individuals such as Steven Spielberg, Zsa Zsa Gabor, and Norman Braman.
 Charities and foundations such as the Elie Wiesel Foundation and the Robert L. Bernstein …show more content…

 The financial institutions that were impacted by Madoff's business relationship.

4- What was the response to the fraud case? Does the organization still exist?
The response to the Bernard Madoff fraud case was widespread shock and outrage. Many of Madoff's victims lost a significant portion of their life savings, and there was significant public anger at the failure of regulators to detect and prevent the fraud.
The Madoff investment firm, Bernard L. Madoff Investment Securities LLC, was forced to close its doors after Madoff's arrest, and its assets were placed in the hands of a court-appointed trustee with the goal of recovering as much money as possible for Madoff's victims.

5- Should have member of the management team know that fraud was happening? Were there any warning signs?
It is unknown to what extent Bernard L. Madoff Investment Securities' executive team members were aware of the fraud. Madoff has insisted that he took these acts alone and that nobody else at the company was aware of them. Other employees of the company, according to some sources, may have been complicit in the scam or had knowledge of

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