ipl-logo

The History Of The Bernie Madoff Scandal

860 Words4 Pages

The Bernie Madoff scandal is what Judge Laura Taylor Swain called “the biggest Ponzi scheme known to man” (Behar, 2015). Bernie Madoff managed to con people out of a total of $65 billion dollars. He did this by running a Ponzi scheme. A Ponzi scheme baits investors by assuring them that they will get a remarkably high return. He was able to sneak by the SEC so easily partially because he was a well-respected individual in the financial community. He was one of the original creators of the NASDAQ stock exchange. He was also very exclusive when it came to who he would take on as an investor.

A man named Harry Markopolos reported to the SEC in 2005 that he was doubtful that Madoff’s hedge fund was legit. However, the SEC didn’t take any action because the financial reviews were saying that everything looked normal. In 2010 Markopolos had a book published that talked all about the investigation that he did on Bernie Madoff. Now even though Markopolos thought something wasn’t right it was Madoff’s two sons, Andrew and Mark, that turned their father over to the FBI when he had informed them that his business was actually running a Ponzi scheme. …show more content…

After Madoff admitted to his crimes the SEC did make some reforms and moved toward an improved operation. They did things like upping how the handled complaints and tips. They also wanted to improve the protection that clients of investment advisors had from things like

Show More
Related
1565 Words | 7 Pages

Mr. Bernie Madoff decided to take a hundred and fifty years in a federal correctional facility , then to be tried for his 52 counts of white collar crimes and possibly suffer more time with the Federal Correctional Facility. Therefore, Madoff never, Appeal to sentence went forth in the court Affirmed This is a guilty Plea of 52 counts SEC violation. Bernie Madoff Also charged under title 15 United States code section 78 j(b) & 78ff, Channel 17, code of the federal regulations Comma Selection 240. 10 b- 5;

Read More
1275 Words | 6 Pages

He would entice investors to give him money, and then illegally use that money as “collateral” for multiple loans. “Investment dividends” were paid out regularly to give the impression of successful management, but this money was simply contributions from other investors. Ward, quite simply, was the Bernard Madoff of the

Read More
464 Words | 2 Pages

As long as new funds keep flowing in, Madoff could continue to pay off existing investors and maintain the crime. The scheme eventually collapsed in December 2008, during the global financial crisis, when Madoff confessed to his sons that the investment business was a fraud. The estimated losses from the scheme were around $65 billion, making it one of the largest financial frauds ever. The scheme unraveled during the 2008 financial crisis when investors started to withdraw their money and Madoff couldn't keep up, proving the fraudulence. Madoff was arrested and pleaded guilty to various charges, including securities fraud, investment advisor fraud, and other crimes.

Read More
697 Words | 3 Pages

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.

Read More
186 Words | 1 Pages

He was able to do this by tricking people out of their money. The trick that was played is he would claim this investment would be the next big thing and would pocket most of the money and use the old investments to pay off some of the new ones. He was able to gain people’s unwarranted trust by this method. He deceived a bountiful amount of people and gained money and power doing it. Madoff used

Read More
510 Words | 3 Pages

In this paper I will be talking about Bernard “Bernie” Madoff and his Ponzi scheme which is known as the worst example of investor fraud in history involving his investment business which ended up all being a huge scam. This scheme is known as the worst in history because of how much money Madoff cost the people who used his investment system. The entire scandal was heard around the world because of just how extreme it was to comprehend. Bernard Madoff “Bernard “Bernie’ Madoff was born on April 29, 1938, in Queens, New York.

Read More
386 Words | 2 Pages

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.

Read More
643 Words | 3 Pages

Madoff withdrew money from his bank account if the clients asked for funds. Clients never questioned him because they always received an average of 10 %- 15% of returns.

Read More
368 Words | 2 Pages

This is definitely the story of Charles Ponzi, who immigrated to the United States from Italy in 1903. The Ponzi scheme, named after Charles Ponzi after he became famous for his ill-gained money. After starting the scheme in 1920, it took Ponzi only six months to become a well-known millionaire in Boston, Massachusetts.

Read More
1336 Words | 6 Pages

Many factors played a role in his fluid manipulation of clients. Firstly, Madoff was a well-respected financier. He had started a legitimate business in the 1960’s trading stocks not listed on the Stock Exchange and later served as chairman of the NASDAQ for three years. He was very successful as a financial adviser, thus the positions he held in the financial world made him inevitable seem trustworthy enough to handle persons

Read More
1555 Words | 7 Pages

Bernie Madoff has been accused of violation of title 17 cob of federal regulations Section 240. 10B - 5. Madoff was accused of defendant, unwillfully, willfully and knowingly, by the use of mean and instrumentalities, in connection an entry interstate commerce with the purchase and selling of securities, would and could use and employ manipulative and deceptive devices. Bernie Madoff mislead misrepresented himself to invest in businesses to take part of his and engaged and his illegal Enterprise for profit no true return on investment. Summary of Facts Does Bernie Madoff offenses 52 counts under the ECC Warren a plea or a trial.

Read More
2044 Words | 9 Pages

An Ethical Analysis on Bernie Madoff and The Biggest Ponzi Scheme in History Intro The money related framework is surely a secret for some, notwithstanding for the splendid personalities that attempt to review its conduct. Some of these splendid personalities pick up their cash by helping other people pick up theirs. They are likewise known as monetary organizations.

Read More
1489 Words | 6 Pages

The scheme is named after Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s(Sec.gov). How did Madoff use this scheme is that according to the author Srinivasan C. Ragothaman article The Madoff Debacle: What are the Lessons? Madoff started promising a steady return of 10 to 12 percent each year for his clients (Ragothaman 274). He continues to say Mr. Madoff promised positive and steady returns always no matter how the market was (Ragothaman 274). With these promises Bernard Madoff was taking money from investors in order to pay other investors he borrowed from and also his investors did not know what was Bernard Madoff was doing with their money.

Read More
539 Words | 3 Pages

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.”

Read More
796 Words | 4 Pages

On April 27th, 2010 SEC filed a civil suit against it with a fine of $550 million. The following midmorning there was a fall of 13% in its shares along with a wipe-out of $12 billion of shareholder value. Goldman very well deserves this for its unethical behaviour. The CDOs that landed Goldman Sachs in hot water had reaped them revenue of $13.39 billion.

Read More

More about The History Of The Bernie Madoff Scandal

Related Topics

Open Document