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Does The SEC Bear Any Responsibility In The Extent Of The Madoff Scheme?

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1. Charles Ponzi was a working-class Italian immigrant who was eager to find success in America. Bernard Madoff was already a multimillionaire before he started his scheme. Does that make one more unethical than the other? Why or why not? No, it does not make one more unethical than the other. Both Ponzi and Madoff made a decision to rob others and benefit from their investments. However, it does make one wonder the commonsense and greediness of Madoff. If Madoff was already a multimillionaire he should have known the consequences of the Ponzi scheme. Madoff was greedy regardless of his reputation and success; he wanted more and instead received 150 years in prison. Ponzi in the other hand was seeking for success; it does not justify robbing others, but it’s more understandable why he handled the investments …show more content…

Does the SEC bear any responsibility in the extent of the Madoff scheme? In what way? Yes, the SEC does bear responsibility in the Madoff scheme. The SEC is responsible for conducting investigations to prevent financial fraud. Although it was reported, the SEC there were at least 29 red flags to prevent the scheme to continue. However, the SEC failed to properly investigate to stop the financial fraud led by Madoff. When the SEC was given the several reports documenting the risk of fraud, the SEC ignored and failed to investigate a scheme that could have been prevented during the first investigation submitted in 2000. 4. Does the fact the Madoff offered less outrageous returns (10-18 percent per year) on investments compared to Ponzi’s promise of a 50 percent return in only 90 days make Madoff any less unethical? Why or why not? No, both were unethical regardless what the promised returned. People were looking for ways to “earn” fast money, and instead of Madoff or Ponzi giving them accurate rates or actually investing the money they decided to do other things with the funds. They are both equally unethical since both robbed and lied for their own

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