Bernie Madoff's Ponzi Scheme

For Bernie Madoff he was able to use a couple of different factors to continue to bring in more business for his firm. Bernie was a very smart, intelligent man himself and was well liked in the financial community. Madoff had received his Bachelor’s Degree from Hofstra University where he had previously served as a trustee until his scheme was revealed (Troop, 2009). Madoff had been instrumental in the development of the NASDAQ providing him first-hand knowledge of this new market and how it would make things easier, especially for him and his Ponzi scheme (Ferrell, Fraedrich, & Ferrell, 2013). Having served as the NASDAQ Chairman for three years in the early nineties, knowledge of the changes being made to the regulations were virtually placed in his lap and made it much easier for him to keep up this scheme. Madoff Investors could rightfully assume that Madoff was very knowledgeable of the inner workings of the stock market. Just like in a lot of

Allegations and red flags arose over the years that lead to investigations being brought, but no discovery being made. Madoff had several off shore accounts that could not be tracked, therefore there was no way of knowing the money trail, let alone prove any wrong doing for his actions. His successful exploitation of the hedge fund industry and the limited regulations placed on his company, aided him in flying far under the radar even with the red flags (Nichols, 2011). Additionally, Madoff did not register his company with the SEC until 2006, just two years prior to the allegations that would bring him down (Ferrell, et al, 2013). If he had registered with the SEC prior, would charges have come sooner, that we may never know? However, I do believe in part, he did not register with the SEC because of his first-hand knowledge and knowing it would be easier for him to be caught if he