Bernard Lawrence Madoff: Greed Over Ethics?
Madoff: Greed over Ethics?
Bernard Lawrence Madoff is a former American stockbroker, investment advisor and financier that surprised the world of finance when it was uncovered that he had been operating the largest Ponzi scheme in history for near two decades. The fraud worth approximately 65 billion dollars ruined the lives of many who had trusted Madoff with their money and admired him as successful, charismatic, smart and exceptionally good at his job. Some even considered him as a hero, including his employees and his sons who strived to please him.
Bernie was born in 1938 in Queens, New York. He attended University of Alabama which he left a year later and transferred to Hofstra University where he graduated in 1960. Madoff later founded his firm, Bernard L. Investment Securities LCC and became self-employed. The firm became one of the largest market makers. He managed to make a name for himself was respected for running one of the most lucrative investment firms. His hedge funds attracted many wealthy people including the Jewish …show more content…
However, what he did was to deposit all clients’ funds into a single bank account and used it to pay clients that wanted to cash out. He kept up this scam by attracting new investors using his charisma, reputation and persuasive skills. Bernie could have kept this charade going longer not only because he had the good reputation but mainly because he had people’s trust. They believed in him and paid for it. When the market sharply downwards in 2008, investors were panicking and began cashing out their money, Madoff was unable to keep up the fraud. He confessed to his sons that a branch of his firm was actually a Ponzi scheme. They reported him to the authorities and he was arrested the next day. He pled guilty to 11 felony charges and on June 29, 2009, he was sentenced to a 150 year in
Bernard Lawrence Madoff is a former American stockbroker, investment advisor and financier that surprised the world of finance when it was uncovered that he had been operating the largest Ponzi scheme in history for near two decades. The fraud worth approximately 65 billion dollars ruined the lives of many who had trusted Madoff with their money and admired him as successful, charismatic, smart and exceptionally good at his job. Some even considered him as a hero, including his employees and his sons who strived to please him.
Bernie was born in 1938 in Queens, New York. He attended University of Alabama which he left a year later and transferred to Hofstra University where he graduated in 1960. Madoff later founded his firm, Bernard L. Investment Securities LCC and became self-employed. The firm became one of the largest market makers. He managed to make a name for himself was respected for running one of the most lucrative investment firms. His hedge funds attracted many wealthy people including the Jewish …show more content…
However, what he did was to deposit all clients’ funds into a single bank account and used it to pay clients that wanted to cash out. He kept up this scam by attracting new investors using his charisma, reputation and persuasive skills. Bernie could have kept this charade going longer not only because he had the good reputation but mainly because he had people’s trust. They believed in him and paid for it. When the market sharply downwards in 2008, investors were panicking and began cashing out their money, Madoff was unable to keep up the fraud. He confessed to his sons that a branch of his firm was actually a Ponzi scheme. They reported him to the authorities and he was arrested the next day. He pled guilty to 11 felony charges and on June 29, 2009, he was sentenced to a 150 year in