Saturday, January 7, 2017

Bernie Madoff Case Study

Bernie Madoff was a well known and a well-liked man on besiege Street. Madoff had an impecc fitting reputation, not moreover in the investment market, just now socially, too: Nasdaq made him its professorship; the Securities and Exchange Commission establish him to industry panels; Madoff was even able to arrange with the Wilpons, owner of the sore York Mets, for his staffers to play charity playground ball games on the field at Shea Stadium  (Bandler et al. 52). That is why the res publica was stunned to learn that on December 11, 2008, Bernie Madoff was becomeed on charges of thi of all magaziney of billions of dollars from his clients over the decades prior to his arrest (Dodge The IT Secrets  26).\nBernie Madoff ran an elaborate Ponzi scheme at his investment company, Bernard Madoff Investment Securities, with the economic aid of Frank DiPascali. DiPascali was accountable for overseeing the 17th floor, the location where the illegitimate care trades occurred (Bandl er et al. 50). Madoff conducted the Ponzi scheme in the succeeding(a) way: he would pick up investments from outside investors; he would, in turn, use those funds to pay up senior investors. The funds that Madoff veritable were never used to sort out actual trades; the company, instead, produced sham trades. To bound suspicions low in the investors, Madoff had the staffers of the seventeenth floor create fictitious quarterly statements to mail out. The investors were mirthful with the returns that the statements reports, so no suspicions ever arose (Dodge The Technology Behind  22).\nAlthough suspicions never arose with the investors, suspicions did, however, arise with the Securities and Exchange Commission. The SEC, on at least pentad occasions beginning in 1992, investigated Madoff and his company. On each occasion, though, the SECs auditors never uncovered any duplicitous activities, which allowed Madoff to continue the illegitimate short letter trades for an extend ed period of time (Rhee 366). Madoff continued ...

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