Bernard Madoff Case
This week’s case study, The Fraud of the Century: The Case of Bernard Madoff, details an elaborate Ponzi scheme and characterizes every aspect of a white collar crime. Bernie Madoff originally began carry out buying and trading stocks legally. Madoff was never registered as an investment advisor and the SEC paid little to no attention to the business he conducted (Gaviria and Smith, 2009).
Bernie Madoff established a family friendly framework. This framework employed his wife, brother, niece, and sons. Although Madoff denied that any of his family members were aware of the unethical business practices, his family can be associated with the day-to-day transactions. Madoff also implemented a personal philosophy regarding hiring. This philosophy …show more content…
At one point, it was recommended that the funds of Madoff should be eliminated from approved funds (Ferrell, et al, p. 5). The case also indicates that the Securities and Exchange Commission should have recognized the fraudulent practices of Madoff. Thus, it is implied that the buying and trading of investments should inhibit stricter regulations and protocols. Investors were dramatically impacted. For example, Loretta Weinberg, a New Jersey senator, ultimately lost her $1.3 million life savings within the Madoff investment scheme (Ferrell, et al, p. 8). Investors sought restitution. This restitution has been sought from not only Madoff, but also the SEC. Investors feel that the agency was neglectful in their responsibility to the consumers for which they serve.
In conclusion, Bernie Madoff carried out one of the world’s most crucial lessons regarding unethical white collared crime. “Madoff, who admitted guilt and was sent to prison, is now serving 150 years for orchestrating the biggest Ponzi scheme in history” (Patel, 2013). Madoff was able to conduct his illegal transactions for years without the SEC taking action. Gatekeepers dropped the ball on their responsibility to provide legal and ethical market
Bernie Madoff established a family friendly framework. This framework employed his wife, brother, niece, and sons. Although Madoff denied that any of his family members were aware of the unethical business practices, his family can be associated with the day-to-day transactions. Madoff also implemented a personal philosophy regarding hiring. This philosophy …show more content…
At one point, it was recommended that the funds of Madoff should be eliminated from approved funds (Ferrell, et al, p. 5). The case also indicates that the Securities and Exchange Commission should have recognized the fraudulent practices of Madoff. Thus, it is implied that the buying and trading of investments should inhibit stricter regulations and protocols. Investors were dramatically impacted. For example, Loretta Weinberg, a New Jersey senator, ultimately lost her $1.3 million life savings within the Madoff investment scheme (Ferrell, et al, p. 8). Investors sought restitution. This restitution has been sought from not only Madoff, but also the SEC. Investors feel that the agency was neglectful in their responsibility to the consumers for which they serve.
In conclusion, Bernie Madoff carried out one of the world’s most crucial lessons regarding unethical white collared crime. “Madoff, who admitted guilt and was sent to prison, is now serving 150 years for orchestrating the biggest Ponzi scheme in history” (Patel, 2013). Madoff was able to conduct his illegal transactions for years without the SEC taking action. Gatekeepers dropped the ball on their responsibility to provide legal and ethical market