Preview

madoff case

Powerful Essays
Open Document
Open Document
1486 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
madoff case
I. Executive Summary
There is plenty of blame to go around the “Madoff Scandal”; there are multiple theories how Bernie Madoff was able to pull such a cunning scheme for so long, but the question is, amidst all the finger pointing who is really to be held responsible for it?
Upon reading the article, I cannot help but feel the same uneasiness in the situation Madoff is facing with the dilemma the Philippines is struggling with right now – the Napoles scam. He was caught up in a huge tangle of problems that have piled-up for a long time, which would not have been possible in the first place had the right agencies of the government acted quickly to prevent such horrible damages. There are those who claim that warning signs existed, but people ignored them while earning hundreds of millions of dollars. After the downfall of Madoff, quite a number of reputable firms and financial institutions, like JPMorgan Chase and Swiss bank UBS AG, have faced lawsuits in connection with this scandal because they have been allegedly accused of knowing about the fraud undertaking but refused to protect investors. Knowing then that there are those who were aware of the situation, can the government claim innocence? I find it ridiculous that a single man, even if he is a financial genius, can outwit the world for so long without anybody else covering up for him. Just like Janet Lim-Napoles, it is impossible for her alone to succeed a large-scale fraud without anyone inside the government to back her up. Is the government not accountable for the failure to stop the fraud years before it grew into a gigantic fiasco?

II. Statement of the Problem
The Madoff Scandal in comparison with the vast financial crisis that sprang up in 2008 is nothing but a small fry. The bigger fish that alluded proper judgment was no one but the people inside the government itself. Its failing system was overlooked because political manipulators peddled the people’s mind with nonsense, committing

You May Also Find These Documents Helpful

  • Good Essays

    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
  • Good Essays

    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
  • Powerful Essays

    Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between a fraud “condition” and a “fraud risk factors,” and provide examples of each. What fraud conditions and fraud risk factors were apparently present in the Madoff case?…

    • 1261 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Bernie Madoff did not work alone. One reason is because a scheme of this magnitude would have been difficult for one man, even one as smart as Madoff, to pull off alone. Because of his long career and the amounts being traded at the end of 2009, the probable answer is that some people involved with Madoff were knowingly skirting financial rules and procedures. Some should be made aware of the legal fuzziness that exists within the financial sector. Such fuzziness has, in part, been deliberately created either by rule omissions or by tactics that circumvent such rules. The SEC cannot hold individuals criminally liable for breaking SEC rules. The SEC can fine companies and ostracize people and firms from publicly trading on financial exchanges, but that is all.…

    • 282 Words
    • 2 Pages
    Good Essays
  • Better Essays

    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
  • Good Essays

    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
  • Satisfactory Essays

    3 Madoff

    • 458 Words
    • 2 Pages

    Based on your knowledge of White Collar Crime, these documents and any independent sources that you deem appropriate, please explain what white collar crimes Madoff committed (including citing the applicable federal statutes) and describe the actions that he undertook that constituted the commissions of those crimes.…

    • 458 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Bernie Madoff Essay

    • 5930 Words
    • 24 Pages

    References: 1. Arvedlund, E. (2010). Too good to be true: the rise and fall of Bernie Madoff. Penguin Group.…

    • 5930 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Bernie Madoff, former chairman of the NASDAQ Stock Exchange ran one of the biggest Ponzi schemes in U.S. history (Stanwick & Stanwick, 2015). Madoff took money from many people and organizations who invested in his fake company promising them above average returns for their investment. Using a small staff along with a couple of family members Bernie Madoff was able to scheme millions of dollars from over 13,000 people all over the world only to benefit from the scheme leaving others penniless and broke and some organizations had to eventually close their doors because the scheme took every dime they had (Stanwick & Stanwick, 2015). Because of his close knit ties to the financial industry Bernie Madoff was able to gain investment from some of the wealthiest people and organizations in the world.…

    • 844 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Bernie Madoff Ethics

    • 1459 Words
    • 6 Pages

    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
  • Satisfactory Essays

    The Bernie Madoff fraud happened because of greed. All of the people involved wanted more and more money and eventually the system collapsed. On March 12, 2009, Bernie Madoff pled guilty to the largest Ponzi scheme in history. He successfully took $65 billion from investors that trusted him with their money.…

    • 481 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Bernie Madoff

    • 1197 Words
    • 5 Pages

    Bernard (Bernie) Madoff committed this century’s largest Ponzi scheme to date. First we will define Ponzi Scheme – it is a fraudulent pyramid scheme where original investors are paid their gains out of new investors money so it would appear to old investor that the scheme (business) is producing an unusually large return (Albrecht, 2009). The Ponzi scheme that Madoff created and pulled off for years was quite intricate. In a standard pyramid scheme each victim unknowingly brings in more and more victims, where as a Ponzi scheme has a single entity (group or individual) to keep up with and organize the fraud. The operator of the Ponzi scheme then will take new money brought in from recent investors and pay off previous investors. For this to continue on there must be a constant influx of new investors so there must be someone working that angle on a regular basis. Eventually the group of new investors will run out because the funds dry up. In a lot of Ponzi schemes when they begin to run low on victims things seem to fall apart and investors loose it all. In some cases the perpetuator escapes the area with all the money he / she have scammed. When or if they are caught the perpetuator will have to face prosecution and / or repayment of all money to victims and possible jail / prison time or pay restitution to the government. In some cases there are assets seized to reimburse victims and pay restitution (Smith, 2011).…

    • 1197 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    The Bernie Madoff Scandal is considered to be the largest financial and accounting fraud in American history. The details of the scandal itself are so complicated and unbelievable that it appears to be a work of non-fiction. Many have tried to gather enough evidence to make sense of what happened, but there was never enough evidence to prove when the fraud began. Madoff himself said that the scheme began in the late 1980s or early 1990s, but then again we cannot be certain of when it really started. Many lives have been effected by this scandal and cause some significant changes to be made to the Securities and Exchange Commission (SEC).…

    • 1550 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Bernie Madoff

    • 1230 Words
    • 5 Pages

    The next question that comes to mind is: how do you take money from all these people and they never realize what is actually happening? Madoff’s general employees didn’t know that the company was a scam but his “specialized” group of…

    • 1230 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Bernie Madoff Case

    • 412 Words
    • 2 Pages

    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

Related Topics