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. This type of scheme is known and called Ponzi scheme. The same fraud were happened by Bernard Madoff was discovered in December 2008. Bernard Madoff who worked as the former non-executive chairman of the NASDAQ stock market, and the admitted ...view middle of the document...

In this case, the opportunity existed to deceive others without effective audits, as a result of this case, I know many investors don’t lack of money because they are rich but want to receive high interest earned for getting much money.
In this case study, I realized there are three charismatic related to either socially or professionally. What kind of motivation of Ponzi perpetrator? At least three critical components of a Ponzi scheme: First, it is essential for looking pretention clients and convince a group of people about investment idea; second is use his reputation and promises a high rate of return. Finally, he builds credibility by initially delivering on his or her promises. Furthermore, in Madoff case, I realize there are couple of ethical issues involved, such as he abuse the firm’s resource to cheat investors and SEC, also there were differences of interests between their employees and SEC.
Even Mr. Madoff confession his guilty as convicted fraudster, actually, he was not work alone, many people helped him in creating and sustain his Ponzi sheme. Let’s look at their family tree show below:
Peter,...

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