Preview

Bernie Madoff Ponzi Scheme

Powerful Essays
Open Document
Open Document
2511 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bernie Madoff Ponzi Scheme
-------------------------------------------------
Bernie Madoff Ponzi Scheme

Communications II
Formal Report

-------------------------------------------------
Table of Contents
Cover Page…………………………………………………………………………………..page 1
Title Page…………………………………………………………………………………….page 2
Introduction………………………………………………………………………………..page 4
What is a Ponzi Scheme?.................................................................page 5 Origine of the name Ponzi Scheme……………………………………..page 6
How did he do it?.........................................................................page 7-8
How did he get caught?.............................................................page 9-10
Who did it affect?.....................................................................page 11-12
Conclusion…………………………………………………………………………………page 13
Recommendation………………………………………………………………………page 14
Bibliography/Sources…………………………………………………………………page 15

-------------------------------------------------
Introduction

Can you trust anybody with your money? Only 5 years ago, the largest, longest and most widespread financial scheme in history, took place: The Bernie Madoff Scandal. Bernie Madoff was found guilty for robbing his investors of billions of dollars. He didn 't just con fat-cat billionaires and celebrities (such as Kevin Bacon and Steven Spielberg); individual investors, banks and even charities lost money in the scheme. In this report I will be bringing you on an adventure to dig up the truth of what really happened back in 2008. We will determine how Bernie and his accomplices achieved their goal, learn how people suffered from this scandal and discover how Mr. Madoff’s scheme came crumbling down before his very own eyes.

-------------------------------------------------
What is a Ponzi Scheme?
A Ponzi scheme is a deceitful investment operation that pays returns to its investors from their own cash or the money paid by future investors, instead of from profit attained by


Bibliography: The Associated Press December 15, 2008 John Carney December 15, 2008 Inside Story December 17, 2008 Inside Story March 12, 2009
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    The Bernard Madoff Ponzi Scheme Scandal
    • 324 Words
    • 2 Pages

    The Bernard Madoff Ponzi Scheme Scandal

    The Bernard Madoff “Ponzi Scheme” scandal was the biggest and lasted the longest financial fraud in the history of the US. Bernard Madoff was a financial adviser, and also the former chairman of the NADAQ. He established his investment firm named “Bernard L. Madoff Investment Securities LLC” in 1960. The Madoff Fraud is a typical “Ponzi Scheme”, in order to attract investors to give money to him, he convinced people to hand over their life saving, and promised them high returns rate, and then he used these money to make payments to those earlier investors. He took the investors for a $65 billion over the course of nearly two decades. In the end, Bernard was sentenced to maximum 150 years prison life and a forfeiture of $170 billion.…

    • 324 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Bernard Madoff: Fraud Of The Century
    • 396 Words
    • 2 Pages

    Bernard Madoff: Fraud Of The Century

    In the case of Bernard Madoff, an overview was provided that describes the fraud of the century. As a result of the Ponzi scheme, social attitudes toward the investment industry were lukewarm. I will describe the highlights of the case.…

    • 396 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Bernie Madoff and the Biggest Swindle in History
    • 701 Words
    • 3 Pages

    Bernie Madoff and the Biggest Swindle in History

    1. What unhealthy motivations drove Madoff to defraud investors and betray his friends? The motivation is selfishness. This is based on noted greed (extravagant lifestyle and the need to continuously take more money), narcissism (feeling of entitlement and ignoring welfare of others), and Machiavellianism (manipulation of others for self-gain, creating positive impressions while he gets what he wants).…

    • 701 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Business Case Against Bernie Madoff
    • 1722 Words
    • 7 Pages

    Business Case Against Bernie Madoff

    Bernard L. Madoff (Bernie) is still making news headlines. He is currently incarcerated for numerous illegal and unethical behaviors. I am going to: Describe three types of illegal business behavior alleged against Bernie and explain how the behavior is illegal or unethical. Name three types of parties who were impacted by the actions of Bernie and how. Describe three business safeguards that may have prevented the harm caused by Bernie. Describe three ways investors might have better protected themselves from risk. Describe three legal actions that possibly may be brought against Bernie under criminal or civil law. And provide an analysis…

    • 1722 Words
    • 7 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Bernie Madoff's Decades-Long Ponzi Scheme
    • 61 Words
    • 1 Page

    Bernie Madoff's Decades-Long Ponzi Scheme

    One hundred and fifty years in prison. Shame brought to his family for bankrupting so many friends. Suicide by his son. These are the costs Bernie Madoff incurred for running a decades-long Ponzi scheme that appropriated an estimated $18 billion from investors. If Madoff was just maximizing his income, then why did so many cheer when he did the "perp…

    • 61 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    The Bernie Madoff Ponzi Scheme
    • 346 Words
    • 2 Pages

    The Bernie Madoff Ponzi Scheme

    The Bernie Madoff Ponzi scheme was life altering for numerous individuals who trusted in Madoff with their life savings and hard-earned wealth. Although the original scandal made headline news over eight years ago lawsuits and other remnants still remain. In 2013, one of largest organizations that people believe contributed the J.P. Morgan (JPM) agreed to settlement with a onetime payment of $billion dollars (J.P. Morgan Chase Will Have To Pay A Fine, 2013). Although many believe that JPM was the blame for not breaking the news of the Ponzi scheme sooner due to obvious red flags related the Madoff laundering money in and out of accounts held at the bank, JPM has still taking the stance that they were not to blame. Furthermore, in 2015, another…

    • 346 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Bernie Madoff's Ponzi Scheme
    • 276 Words
    • 2 Pages

    Bernie Madoff's Ponzi Scheme

    The organizational leadership of Bernard L Madoff Investments Securities LLC was held by Bernie Madoff himself. Madoff’s charismatic leadership style included seducing friends, those in secluded groups, and even his own employees. Madoff seduced his clients by making them to believe they were investing in something special, he would often turn people away, which helped Bernie in courting people and charities with more assets to offer. Madoff started his investment advisory firm by inviting Jewish people, many of whom belonged to exclusive country clubs as well as Jewish charities to buy in. These people would then become networkers for Madoff, by allowing other investors to buy in to the Ponzi Scheme Bernie was running.…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    No One Would Listen
    • 1165 Words
    • 5 Pages

    No One Would Listen

    This book brought out the failures of the Securities and Exchange Commission (SEC) in one of the biggest Ponzi schemes in America’s history, as orchestrated by Bernie Madoff. Harry Markopolos caught up with Madoff’s Ponzi scheme earlier on in his career and saw all the red flags. There was no explanation of the continuous one percent yield in over forty five stocks that Madoff dealt with. Madoff took advantage of the laxity by the SEC officials in failing to follow up complains with an investigation, and the trust bestowed upon him by the high and mighty. As long as the public saw paper trail provided by Madoff that the stocks were continuously yielding dividends, there was no cause for alarm. The few people that realized that Madoff was actually pushing a Ponzi scheme alerted the appropriate authorities which in turn let Madoff off with a slap on the wrist. The SEC went to investigate Madoff in his building on the 18th and 19th floor but missed a whole 17th floor where the scam was mainly doing its operations. Over a period of nine years Markopolos alerted the SEC five times about the Ponzi scheme that Madoff was running, but they caught up with him when most of the money was already spent lavishly in gifts and exorbitant parties.…

    • 1165 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Bernie Madoff Ethics
    • 1459 Words
    • 6 Pages

    Bernie Madoff Ethics

    This paper will discuss the matters of Bernard “Bernie” Madoff. Are his actions to be deemed unethical, immoral, or both immoral and unethical? Madoff plead guilty to conducting his $65 billion Ponzi scheme. This in turn led him to be charged with several counts of money laundering amongst other things. His world came crumbling down around him the day after the company’s Christmas party in December of 2008.…

    • 1459 Words
    • 6 Pages
    Good Essays
    Read More
  • Better Essays

    Bernie Madoff
    • 1238 Words
    • 5 Pages

    Bernie Madoff

    After this happened anyone caught swindling money from incent investors would be know as to have pulled a Ponzi scam. No one our nation has every beaten what Charles Ponzi until 2008. Bernie Madoff has been charged and convictedof pulling off the largest financial scam every by taking over $50 billion over a course of decades from people that trusted him to invest and give large returns. But who is the man that earned this trust and where did he come from?…

    • 1238 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Bernard Madoff
    • 1489 Words
    • 6 Pages

    Bernard Madoff

    In court, he stated that he began by promising strong returns even though the stock market was not doing very well and the country was in a recession during the 90’s. Bernard L. Madoff Investment Securities LLC was his firm that was used to con thousands of people out of their money, some of the funds provided by his customers were, life savings or retirement funds. Madoff was not shy to admit that he knew the day…

    • 1489 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Bernie Madoff Case
    • 412 Words
    • 2 Pages

    Bernie Madoff Case

    The issue of whether HSBC had an adequately incredible and essential effect in revealing Bernie Madoff is very controversial. However, after very careful consideration, I believe that HSBC’s role had a sufficiently great and important impact in uncovering Bernie Madoff.…

    • 412 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    The Money Making Ponzi Scheme
    • 2074 Words
    • 9 Pages

    The Money Making Ponzi Scheme

    According to the NCAA website, the NCAA has over 444,000 college student athletes. There are scholarships for some athletes but not all student-athletes receive scholarships. I myself am a scholarship football player here at Kutztown University, which means I receive a partial athletic scholarship for my athletic achievements in high school. There are many athletes around the world who do not receive scholarships, and those who do are not getting paid what they should be for the talents. Universities make millions of dollars off of student athletes, so why do we not get to see the money we bring to the school.…

    • 2074 Words
    • 9 Pages
    Better Essays
    Read More
  • Good Essays

    The Case of the Century: Bernard Madoff
    • 1171 Words
    • 5 Pages

    The Case of the Century: Bernard Madoff

    Bernie Madoff was a thief, plain and simple. He was a greedy, selfish, self-indulgent con artist, no different from any other grifter that you meet, except because of who he was, he was able to pull the con off on a grander scale. Madoff used his name and position and the legitimacy of his first business to draw people into his Ponzi scheme (like a pyramid scheme where one takes money from newer clients to pay older clients). He misrepresented (the kinder word) or lied (if you want the truthful description) to his friends and clients from the beginning and as later documented in his allocution, he never invested any of the money he got. It would have been different if this scheme formed from some bad business decisions and he did this in response to that and was trying to save some of his client’s money, but it wasn’t. Madoff originally provided his clients the 10-12% returns on investment that he offered, but it appears that with the increase in funds, the persons that benefitted the most from the Ponzi scheme was Madoff and his family. They all shared in an expensive and lavish lifestyle bordering on the garish with its excesses. He appeared to hire incompetent people so no one would be the wiser to what he was doing which was a disservice to his clientele. He also appeared to have used some of his misbegotten gains and infused them into his legitimate business therefore, putting it at risk. Nepotism was rampant in Madoff’s business which is why many people believe his family had to be involved more than just the sons and the confession of the scheme.…

    • 1171 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    The Ponzi Scheme Essay: What Is Social Security?
    • 1119 Words
    • 5 Pages

    The Ponzi Scheme Essay: What Is Social Security?

    What is social security? According to the US social security booklet “ Understanding the benefits” published in 2016, social security helps retired, disabled, and families in which spouse or parents die. Currently, about 168 million working people pay social security taxes which are used to help 60 million people. Social security taxes paid by people aren’t held in their personal account so they can receive benefits later, rather it’s given to people currently in need of help. And remaining are put into a social security trust.…

    • 1119 Words
    • 5 Pages
    Good Essays
    Read More