Bernie Madoff Case Study Essay example - 1431 Words

Bernie Madoff Case Study Tanya Seyfried GFN61090033-ACFA12 January 19, 2013 Bernie Madoff was a successful gentleman whose financial career spanned almost 50 years. Some of his achievements include serving as the chairman of the board of the NASDAQ stock exchange; a member of the Board of Directors on the Security Industry Association; and a former National Treasurer of the American Jewish Congress. (Hirt, Block, Danielsen 2011) His greatest achievement was starting and being the chairman of Bernard L. Madoff Investment Securities LLC in 1960. His investment group gave him wealth and notoriety among the financial elite of New York City and around the entire country. Many trusted him and accepted his†¦show more content†¦In four separate attempts, Markopolos met with officials at the SEC (in 2000 and 2001 with the Boston, Massachusetts, SEC office and again in 2005 and 2007 at the New York City SEC office) to convey and expose the truth about Madoff. However, these statements fell on deaf ears. Finally in 2008, the Federal Bur eau of Investigation (FBI) received a criminal complaint filed by the Manhattan States which said that he (Madoff) confessed to his two sons, who were both employed at his firm--Bernard L. Madoff Investment Securities LLC--that he had been running a giant Ponzi scheme. (Wall Street Journal 2012) This led to the arrest of Madoff, who was charged with criminal securities fraud. In the three months that followed, Madoff’: had his investment firm liquidated; was banned for life by the SEC from practicing in the investment industry; gave up the rights to his investment firm, artwork, and event tickets; and pled guilty to 11 criminal charges, including securities fraud, wire fraud, mail fraud, money laundering, and making a false filing with the SEC. The judge ordered him to jail, pending sentencing and revoked his bail. (Wall Street Journal 2012) Bernie Madoff today sits in a federal prison in North Carolina serving his 150-year sentence. Although justice has been partly done , many of those who invested in his ponzi scheme haveShow MoreRelatedBernie Madoff Case Study3354 Words   |  14 PagesCase Study: Bernie Madoff Eric Ranzinger Organizational Behavior – OL 500 Jascia Redwine Abstract Bernie Madoff was one of the top dogs on Wall Street for over 20 years. He managed tens of billions of dollars in client’s funds. His firm was one of the most consistent with profitable returns. When most others were reporting losses during the recession, his firm was consistently reporting net gains. Many celebrities even entrusted their money with Madoff because he was such a reputable nameRead MoreBernie Madoff Case Study3401 Words   |  14 PagesOperated through a complex, cryptic structure Bernie Madoff, CEO of Bernie L. Madoff Investment Securities (BMIS), perpetuated the most embellished Ponzi scheme the world has ever seen. The basis of the securities fraud that took place approximately between 1991 – 2008 was influenced by Bernie Madoff’s reliance upon an unqualified staff, outdated software, organizational seclusion, a personal halo effect, and weaknesses in the regulating body. Madoff had the confidence of the public, yet to pullRead MoreBernie Madof f Case Study4737 Words   |  19 PagesThe Fraud of the Century: The Case of Bernard Madoff The fraud perpetrated by Bernard Madoff which was discovered in December, 2008 is based upon a Ponzi scheme. Madoff took money from new investors to pay earnings for existing customers. The greater the payout to retiring and withdrawing customer, the more revenue or clients he would need to start and â€Å"investment relationship† with Madoff. The Ponzi scheme was named after Charles Ponzi who in the early 20th Century, saw a way to profit fromRead MoreBernard Madoff: Scam Artist1492 Words   |  6 PagesIn December 2008, one of the largest Ponzi scheme surfaced when Mark and Andrew Madoff reported the works of their father, Bernard Madoff to the federal authorities. A Ponzi scheme is an investing scam that promises high rates of return with little risk to investors. The operator generates returns for older investors by gaining new investors. Bernard was arrested on December 11, 2008 and charged with securities fraud. He pled guilty to 11 counts and was sentenced to 150 y ears in federal prison-theRead MoreOverview of the Bernie Madoff Investment Fraud1684 Words   |  7 Pagesï » ¿ Case study: Bernie Madoff Abstract This paper will provide an overview of the Bernie Madoff investment fraud, a Ponzi scheme that continues to affect the lives of the individuals Madoff defrauded under the screen of a legitimate investment firm. It will argue that the signs of the Madoff fraud were obvious and that a combination of a lack of regulatory oversight and incompetence allowed Madoffs chicanery to continue, even longer than Madoff himself thought possible. However, this does notRead MoreBernie Madoff644 Words   |  3 PagesDiyonka Massey Magan Calhoun AIS 3710 22 February 2013 Bernie Madoff Case Study Throughout history, people have done unethical things dealing with money. In 2008, the man known for running a massive Ponzi scheme, known as Bernie Madoff, was arrested and charged with criminal securities fraud, and sentenced for a hundred and fifty years in prison. Bernie Madoff continued his scheme for thirty years because his company was the largest market maker on NASDAQ. He had an impressive rate of returnsRead MoreWilliam Shakespeare s Macbeth And The Human Condition1292 Words   |  6 Pagescondition itself. This will be completed through the extended analysis of the destructive nature of ambition presented in the play Macbeth and finding parallels between this concept and its place in modern society using a contemporary case study; the story of Bernard Madoff. In the very beginning of the play, Macbeth’s ambitions and desires towards power are untouched and concealed. He is portrayed as a righteous and noble man whom has stood for Scotland and its people for quite some time; there is noRead MoreEssay about Case 1.12:Madoff Securities1263 Words   |  6 PagesCase 1.12: Madoff Securities Questions: 1. Research recent developments involving this case. Summarize these developments in a bullet format. 2. Suppose that a large investment firm had approximately 10 percent of its total assets invested in funds managed by Madoff securities. What audit procedures should the investment firm’s independent auditors has applied to those assets? 3. Describe the nature and purpose of a â€Å"peer review.† Would peer reviews of Friehling Horowitz have likelyRead MoreEssay The Madoff Ponzi Scheme3338 Words   |  14 PagesIntroduction Bernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960’s through the 1990’s, Madoff’s success and business grew substantially, mainly from a closed circle of known investors and friends through word of mouth. In the 1990’s Bernard L. Madoff Investment Securities traded up to 10 percent of the NASDAQ on any given day. With the success of the securities businessRead MoreThe Bernie Madoff Ponzi Scheme2588 Words   |  11 PagesIntroduction The Bernie Madoff Ponzi Scheme is a well-known case and is known as one of the biggest Ponzi scheme’s. In summary the scheme occurred for many reasons that I will some up into 3 points; A lack in competency by regulatory agencies, a lack of regulation, and finally a breach in ethics by Bernie Madoff himself. To explain further, the regulatory agencies like the lawyers and SEC are supposed to prevent schemes such as this one from happening but because they lacked the skills to correctly