Essays on Bernie Madoff

Abstract

The Madoff Securities scandal was one of the biggest Ponzi schemes to hit America. This essay would examine the Madoff scandal from an audit perspective since it was the complacency (or collusion) of the auditors that encouraged the perpetrator of this scam. While the scam that was pulled by Bernie Madoff, was both large and difficult to spot, its detection also helped expose a crucial flaw that existed in corporate America at the time. This was the lack of regulatory oversight in the Securities business. While one could lay the blame for this scandal on the Regulator, another important ...

Introduction

The case of Bernie Madoff is a good example of unethical practices can lead to corruption. Madoff, which is the former investment and a stock broker, is introduced around the globe as the only operator in the largest Ponzi scheme ever on record. This is because he turned its financial management firm into a huge Ponzi scheme that defrauded a lot of money from thousands of his investors. The paper will determine the regulatory oversight that was existing while the Ponzi scheme was operating. It also speculates on the main reasons why such plans were not discovered while investing ...

The Madoff Securities case was a phenomenal one, in terms of the sheer size of the funds involved, the duration over which the scam took place as well as the stature of the victims affected. In most comparable schemes, the victims are usually those who have a very limited understanding of financial products and such schemes mostly do not last very long. This paper will review the case by determining the regulatory oversight in place at the time of the scandal and reasons why this scheme was not discovered as well as delve into other aspects of the case.

Regulatory Oversight of the SEC

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In the court systems, various felonies are penalized following the court's guidelines. There are a variety of particulars that go into a sentencing pronouncement. An individual who commits a financial fraud may go to jail for a longer period, compared to someone who commits murder, as is the case of Bernard Madoff, who went to jail for 150 years for committing financial crime and Karla Homolka was sentenced to 12 years in prison for murder. It is, however, clear that an extensive range of verdicts are not necessarily rational to the victims or the scam culprits. This paper looks ...

The “Ponzi Scheme”, a scheme named after swindler Charles Ponzi, is a situation where earlier investors are paid using the funds given by the money brought by new investors. In a Ponzi scheme, there are very few physical assets or even very few financial investors come on board to invest. The end of a Ponzi scheme begins to manifest itself once the owner cannot keep up with the required payments. For this case, Bernie’s Ponzi scheme come out as one of the infamous deed that could be discussed further.

Bernie’s Ponzi scheme

Bernie Madoff was born on 29th April 1938. Bernie ...

(Institution Name)

Bernie Madoff

Abstract Bernie Madoff was found guilty of having administered the biggest monetary fraud in the history of the United States. He administered a Ponzi scheme for more than four decades before he got caught. The court sentenced him to prison for 150 years, and his company was dissolved. To increase his credibility for the Ponzi scheme to work, Bernie Madoff used his designation as chairperson of NASDAQ and also used Wall Street as his business point. In addition to that, he used his Jewish background to extract money from Jewish investors. The national authorities of taxation and ...

Introduction

The Bernie Madoff scandal was a Ponzi scheme involving Bernard L. Madoff Investment Securities LLC. The company was a Wall Street investment firm that was founded by Bernie Madoff himself. This scandal is considered the largest Ponzi scheme ever that ended up costing investors $64.8 billion. The main people involved were Bernie Madoff, his accountant David Friehling, and Frank DiPascalli. The three were responsible for paying investors with the investors own money rather than the profits. Madoff ended up telling his sons about the scandal. They reported him to the authorities and Madoff was arrested the next day. Madoff ...

Unethical Behaviors Involved

Madoff accountant Paul Konigsberg was charged for helping Benerd Madoff, a convicted swindler to deceive thousands of customers in the Ponzi scheme. Konigsberg role included defrauding customers by falsifying records and participating in conspiracy. Thus, he failed in his duties as accountants and favored backdating clients accounts statements. He did this to curb losses of millions of dollars, factious trades and conjured profits. Konigsberg is the 15th person to be charged with the Bernard L. Madoff Investment Securities LLC. fraud. Together with Frank DiPascali, Konigsberg assisted Madoff to manipulate trades and backdating of documents. This aided Bernard L. Madoff Investment ...

The rational choice theory is of the opinion that an individual acts by weighing the costs and benefits brought about by an action at the end through the use of personal advantage. As far as crime is concerned, the theory assumes that the rational decisions made by criminals to engage in any crime are made through the revision of all outcomes and possibilities. The outcomes depend on the benefits the criminals get by committing these crimes. Criminals do however consider the consequences of their actions, such as imprisonment and tread with care in the process of committing a crime. The ...

White collar crimes are financially motivated and non-violent crimes majorly committed by people of high social status. The term “white collar crime” was coined in 1939 by Edwin Sutherland in his speech to the American Sociological Society.White collar crimes are difficult to detect and prosecute. Perpetrators employ highly sophisticated methods to commit crimes and hide the heinous activities through a chain of complex financial transactions. Punishment for these crimes involve: incarceration, restitution, community service, probation, criminal forfeiture, fines or disgorgement.

Bernie Madoff's $50 Billion Ponzi Scheme-Forbes Magazine

This prominent investor was involved in a Ponzi investment scam with the Madoff’s Hedge Fund. A Ponzi scheme is a fraudulent ...

Ethics and Corporate Social Responsibility should work in harmony in a corporate world. These are key traits defined for maintaining good business morals, hiring employees with personal ethical values, and behave ethically and sensitively towards the society, economy and environment as a whole. We will discuss four theories in the context of Bernie Madoff and Enron two of the top financial scandals in the history of America. Profit Maximization Theory - This ethical theory requires decision makers to maximize the profits of their business within the limits of the law. According to the theory the role of government and lawmaking ...

Book Review No One Would Listen: A True Financial Thriller

Summary of the Book Harry Markopolos introduces the book to the reader on the accounted date of December 11, 2008. December 11, 2008 was a crucial day Bernie Madoff was arrested. Madoff was arrested for creating and running a Ponzi scheme. The Ponzi scheme was the largest in history of United States. Markopolos makes sure that the reader comprehends the revelations by incorporating a short story of a man in a plane. The man is shocked by the streaming exposures on the CNBC. The man reveals to his wife that they have lost millions of dollars they had invested with Madoff. However, the ...

Bernard Madoff was well respected, white collar criminals are harder to spot than what we might refer to as ‘real criminals’ If Madoff had not been so well respected there would have been more suspicion and an investigation would have been issued but because he was an ex-chairman of NASDAQ he was not suspected of any wrong doing. What Madoff did was exceptional in terms of financial because of his status but financial crime on a smaller scale happens routinely Today we find it hard to believe that we are suffering a recession when there are people in the ...

Bernard, or “Bernie” Madoff is now an infamous figure in the American media, but before he became one of the most famous villains of all time, he was a well-known and well-respected investment advisor and stockbroker. He worked in the financial sector for many years, even working as the non-executive Chairman of the NASDAQ stock exchange for a time (“The Madoff Scam: Meet The Liquidator,” 2010). Madoff formed his own company in 1960, a firm he called Bernard L Madoff Investment Securities. It is rare for individuals who are so powerful in the American financial sector to become embroiled in such ...

Sociologist Edwin Sutherland described white-collar crime as a crime committed by a person or people of high social class. The crimes are described as non-violent, and conducted with a high degree of professionalism. White-collar crimes are differentiated from the blue-collar crimes by the fact that they do not involve physical violence, or the threat of violence. In most cases, the crimes are motivated by the need for money and result in illegal monetary gain. One of the most notorious convicts of white-collar crime, Bernard Madoff, was in 2009 sentenced to one hundred and fifty years in prison after he was found guilty ...

In the PMBOK (Project Management Body of Knowledge) Guide, one of the most important of the Nine Knowledge Areas in Project Management is Project Risk Management. Simply put, project risk management deals primarily with the need for project leaders and managers to learn how to compensate and think ahead to minimize the potential for things to go wrong. There are several steps to the risk management process that a project leader must consider, and which are typically explored in risk management courses and training bundles: risk management planning, risk analysis, risk response/monitoring/control, and identifying the risks of a project (Business Wire, ...

In the wake of the financial crisis, the Securities and Exchange Commission took a beating for appearing to sit idly by while the likes of Lehman Brothers and Bernard L. Madoff ran amok. Government regulators on the Wall Street beat have long been outnumbered and outspent by the companies they are supposed to police. Even after receiving budget increases from Congress in April 2011, the Securities and Exchange Commission is struggling to fill crucial jobs, enforce new rules, upgrade market surveillance technology and pay for travel. The money squeeze comes as the regulators take on added responsibilities including ...

1. The three types of illegal business behavior alleged against Bernie Madoff include fraud, money laundering and theft. The first, fraud, involves coercing investors to decide whether or not to invest by giving them information that does not correspond to the reality of their situation. Madoff did this by This is meant to provide a short term gain for the defrauder, but significant losses for investors – the person committing the fraud gets the investment money while providing no return on that investment back to the investors. This is an unethical business practice, due to the fact that it is an ...