This website uses cookies to ensure you have the best experience. Learn more

Bernard Madoff Essay

1469 words - 6 pages



BERNARD LA WERENCE "BERNIE" MADOFF Naamah Pagan Augustine Weekley Business Law 1 August 21,2011



Introduction Bernard Lawrence "Bernie" Madoff ran one of the largest Ponzi Schemes. A Ponzi scheme is a scam investment designed to separate investors from their money. It is named after Charles Ponzi, who constructed one such scheme at the beginning of the 20th century. The scheme is designed to convince the public to place their money into a fraudulent investment. Once the scam artist feels that enough money has been collected he disappears taking all the money with him.

Describe three types ...view middle of the document...

"(Steel) The last illegal behavior that I would like to mention is perjury. Perjury is the "willful and corrupt taking of the false oath; that is sometimes called lying under oath; that is deliberately telling a lie in a courtroom proceeding after having taken an oath to tell the truth."(Free Advice) As far as fraud Madoff was the person who made deceitful pretenses, created a sham of an appearance, and gained an unfair dishonest advantage in his firm with his investors and colleges. Madoff also concealed (laundered) millions of dollars both

internationally and nationally which assisted in his wealth. Then Madoff proceeded to lie in court (perjury) truly believing that what he did was justifiable, and that he is the victim and the one that is suffering. He b1ames everything on his client's greed. There was nothing ethical about his actions.

Name three types of parties who were impacted by the actions of Mr. Madoffand describe how they were impacted. The three parties that were impacted by Madoff s actions were his company/employees, his family and his clients. Once Madoff was arrested the employees at his company lost there innocence. The employees felt that nothing was safe anymore. One minute they were getting large



bonuses and extravagant gifts for Christmas to their boss being locked up for illegal behaviors. His family was affected due to the fact that upon Madoff's arrest his families' assets were temporarily frozen as well as three investment funds. Even though Madoff was insisting his family did not know what he was doing they were still thought to be guilty to everyone else. Madoff s father in laws loaned him $50,000 to start Bernard L Madoff Investment Securities. Many of his family members worked for him in key

positions that they were not qualified to hold. Madoff apparently ripped off everyone, retirees, celebrities and some of the riches people in America. There were a staggering number of billionaires and celebrities who

were caught up in what is believed to be a $50 billion Ponzi scheme. Several members of Forbes list of the 400 riches Americans were victims of Madoffs scam.

Describe three business safeguard 9risk managementO that may have prevented the harm caused by Mr. Madoff One of the safeguards that would have been good for Madoff s company would have been the concern of controlling person liability. Madoff had too many immediate

family members holding key positions in his company. No amount of company oversight could have been effective under these circumstances. There were no checks and balances

to make sure everything was being done legally. Having non family members in the key positions would have made it more difficult for Madoff to participate in illegal activities. Another safeguard would have been if the company employees, investors had practiced due diligence. clients and

Due diligence involves identifying and detailing with in a given...

Other Papers Like Bernard Madoff

The Fraud of the Century: the Case of Bernard Madoff

716 words - 3 pages The Fraud of the Century: The Case of Bernard Madoff The Ponzi’s scheme was named after Charles Ponzi who was an Italian businessman in US. Charles promised to their client that more than 50% profit within 45 days, or 100% profit within 90 days by buying discounted postal reply coupons in other countries and redeeming them at face value in the US as a form of arbitrage. However, Ponzi was paying money using the investments of later investors

Chapter 1 Essay

721 words - 3 pages Case 8: The Fraud of the Century: The Case of Bernard Madoff Introduction Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and the former non-executive chairman of the NASDAQ stock market. He is very successful in his early life. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960 by buying and selling over-the- counter stocks that were not listed on

The Lie of the Century

2617 words - 11 pages | The Lie of The Century | Analysis of Bernard Madoff's Ponzi Scheme | | ' Introduction As long as the investment financial market existed, only one man was able to etched his name to the investment history as the greatest fraudster, and his name is Bernard Madoff. A brilliant fraudster that able to swindled over $50 billion from thousands of people using a type of investment fraud called "Ponzi Scheme." Using this type of

Bernie Madoff Case Study

4814 words - 20 pages The Fraud of the Century: The Case of Bernard Madoff The fraud perpetrated by Bernard Madoff which was discovered in December, 2008 is based upon a Ponzi scheme. Madoff took money from new investors to pay earnings for existing customers. The greater the payout to retiring and withdrawing customer, the more revenue or clients he would need to start and “investment relationship” with Madoff. The Ponzi scheme was named after Charles Ponzi

Ethical Behavior in Business

896 words - 4 pages Russell Bettinger BUS-340 – Ethical and Legal Issues in Business 26 October 2014 Esther Lahargoue Analyzing Ethical Behavior Bernard Madoff was a renowned stockbroker, financial adviser, and served as the chairman of NASDAQ. Bernie Madoff is also solely responsible for the largest accounting fraud in all of American history. In December 2008, Madoff admitted to the federal authorities that the wealth management branch of his business

Business Law

1744 words - 7 pages Rosetta Foster Strayer University Business Law I – LEG 100 Dr. Dorothy A. Sliben November 22, 2010 Bernard L. Madoff The $50 billion hedge fund scandal involving Bernard Lawrence “Bernie” Madoff is the largest fraudulent scam in U.S. history, to date. This giant financial Ponzi scheme created and implemented by Madoff targeted members of the Jewish community. Moreover, Madoff’s Ponzi scheme impacted upon people from all walks of life

Madoff Scandal

1844 words - 8 pages firm was using such a small auditor and once who was not PCAOB registered as required by law? How did it go unnoticed that no audits of Madoff’s broker-dealer unit were peer reviewed for the last 10 plus years? Madoff was sentenced, on June 29, 2009; government investigators were certain that in spite of what he stated in court, he had not operated alone. Consider the following: Peter Madoff, Bernard Madoff’s brother, was the senior managing

Ponzi Scheme

885 words - 4 pages protection against double jeopardy and took the case all the way to the US Supreme Court, which ruled that both the state and federal government had jurisdiction, therefore allowing Ponzi's re-prosecution. In a state trial held while Ponzi was in federal prison, he was convicted again, and sentenced to 7-9 years in state prison. Bernard L. Madoff, who is currently serving a 150-year sentence in federal prison, arranged a multi-billion dollar Ponzi scheme

Mitigating Exchange Rate Risk

559 words - 3 pages people do research on the companies over even the person that is asking for large sums of money. These are the things that I will be addressing in this paper. Who is Bernie Madoff Bernie Madoff was born on April 29, 1938, in Queens, New York, Bernard was born to polish immigrants, work for many years as a plumber. Bernie married Sylvia his wife they had one daughter, son. Bernie had hard times during the Great depression so in 1950 he got

Whit Collar Crime

1064 words - 5 pages Running Head: EXPLAINING WHITE COLLAR CRIME White Collar Crime Explanation Kaplan University Deborah Llamas CJ501P-01N Professor Tom DiPaola August 14, 2013 Bernard Madoff, appeared to be a cordial man with an alluring personality, however, despite his friendly demeanor Madoff had another side to him that was not as friendly and compassionate, he was considered to be withdrawn, cold, and unfriendly

Hedge Fund

1596 words - 7 pages Characteristic Line of a Stock Portfolio with Written Options aptly illustrate this problem. Both are provided in the PPT. The $50 Billion Madoff Scandal Bernard Madoff pleaded guilty to operating a $50 billion Ponzi scheme. In a Ponzi scheme the con artist (Madoff) promises and initially pays high returns to investors. The large returns are generated by paying out to old clients some of the money paid in by new clients. The con also skims some of the

Related Essays

Bernard Madoff Essay

895 words - 4 pages | 2012 | | | Bernard Madoff | | Introduction: Born Bernard Lawrence Madoff, April 29, 1938 in New York, New York to Jewish parents, Sylvia and Ralph Madoff, Bernie Madoff graduated with a bachelor of political science from Hofstra University in 1960 (1). Early in his childhood, Bernie did not grow up in a particularly affluent household, as his father worked as a plumber and his mom a homemaker until the 1950’s, when they

Bernard Madoff Fraud Essay

3467 words - 14 pages Abstract This report allows the facts to be known concerning the still mysterious case of Bernard L. Madoff and his longtime investment securities activities, which eventually turned into an enormous fraud of incomparable size. In this report, you will begin to understand how Bernard Madoff was able to execute such an elaborate fraud. The illegal business behavior found in this case is too numerous to count however, quite a few will be

Bernard Lawrence "Bernie" Madoff Essay

748 words - 3 pages Bernard Lawrence "Bernie" Madoff 1. Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business. In March 2009, Madoff pleaded responsible to 11 federal crimes and confessed to turning his wealth management business into a massive Ponzi scheme that cheated thousands of investors of billions of dollars. Madoff said he

Business Ethics Case: Bernard Madoff Essay

2412 words - 10 pages Introduction In the year 1960, with money he earned installing sprinkler systems and as a lifeguard on the beaches of Long Island, Bernard Madoff founded “Bernard L. Madoff Investment Securities,” a “trading power” house that would become one of the largest independent trading operations in the securities industry (Washington, 2012). In the year 2000 his company ranked among the top trading and securities firms in the nation. By age 70, his