Bernie Madoff - 1967 Words

Bernie Madoff Andrea L. Nolt Strayer University Intro to Business Professor Karina Arzumanova August 21, 2011 Bernie Madoff Bernard Lawrence â€Å"Bernie Madoff† is an American former stock broker, investment adviser, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history. (Bernard Madoff, 2011) This paper discusses the massive Ponzi scheme that Mr. Madoff created and those that were affected by it. 1. Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business. Madoff reportedly admitted to investigators that he had†¦show more content†¦He used his investors money to pay for many personal and family expenses. He also withdrew money from these accounts to run his scam. By shuffling the money between his New York business to his London business and then back to his New York business, it made it look as if the New York business was actually operating as a investment advisory business. Mr. Madoff concealed this from his investors. The Ponzi scheme as a whole was very unethical. A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. (Ponzi scheme, 2011) Madoff was taking investors money and investing it into unregistered securities. When investigating these assets, they were found to be missing. This unethical act of defrauding his investors out of millions of dollars led to the charge of securities fraud. 2. Name three types of parties who were impacted by the actions of Mr. Madoff and describe how they were impacted. Three types of parties that were impacted by the actions of Mr. Madoff were his individual investors, charities and his employees. Mr. Madoff plead guilty to defrauding investors in his massive Ponzi scheme. He committed many crimes of tort against these people. He was able to gain investors and intentionally misled them. He took their money and deposited into a Chase bank account and then paid returns to previous investorsShow MoreRelatedBernie Madoff1600 Words   |  7 Pagesâ€Å"If It Quacks Like a Duck† Assignment 2 – Bernard Lawrence â€Å"Bernie† Madoff Business Law I March 4, 2011 Bernard Madoff Abstract Unethical behavior†¦sounds bad doesn’t it? But what employee can truly say that he is completely innocent of any unethical behavior in the workplace? Some of the most common unethical business behaviors are fudging work hours, making phone calls on business lines and photo copying of personal paperwork. Simple acts such as these are highly unlikely to have anRead 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 MoreBernie Madoff2651 Words   |  11 PagesBernie Madoff Research Project Abronia S. Young D03202587 On March 12, 2009, Madoff pleaded guilty to 11 federal offenses, including securities fraud, wire fraud , mail fraud , money laundering, making false statements, perjury, theft from an employee benefit plan, and making false filings with the SEC. The Fraud In March 2009, Madoff admitted that since the mid-1990s he stopped trading and his returns had been fabricated. Madoffs sales pitch, an investment strategy consistedRead MoreBernie Madoff2651 Words   |  11 PagesBernard Madoff Research Paper 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 victimRead MoreBernie Madoff2096 Words   |  9 PagesTHE RISE AND FALL OF BERNIE MADOFF Bernadette Smith Business Law Professor Kopf 8/22/2010 Bernard Lawrence Bernie Madoff , born April 29, 1938 is an incarcerated former American stock broker, investment adviser, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history. In March 2009, Madoff pleaded guilty to 11 federal crimes and admitted to turning his wealth management business into a massive PonziRead MoreThe Case Of Bernie Madoff1438 Words   |  6 PagesOn December 11, 2008, a Wall Street investor named Bernie Madoff was arrested for confessing to one of the biggest Ponzi schemes in history. Before that day, many people had never heard of Bernie Madoff or perhaps may not have even realized their life savings were invested through his firm. To the casual observer, the arrest was just another dirty banker being taken to court for his actions; but in reality, the arrest was devastating to financial institutions, government regulators, and the personalRead MoreThe Scandal Of Bernie Madoff1386 Words   |  6 PagesThe Scandal Bernie Madoff was known as a hard worker who, at one point, created the largest buying-and-selling market maker at the NASDAQ from being a mere penny stock trader in the 1960s. He was a stock broker, a financial advisor, and a chairman of the NASDAQ. As of December 11, 2008, he primarily became known for being responsible for the largest Ponzi scheme in history. He was able to make $50 billion disappear as if the money had never existed by using new investors’ money to pay out theRead MoreBernie Madoff Essay5927 Words   |  24 Pages How Madoff Executed the Fraud Madoff’s scheme to defraud his clients at Bernard Lawrence Madoff Investment Securities began as early as 1980 and lasted until its exposure in 2008. Bernard carried out this scheme by soliciting billions of dollars under false pretenses, failing to invest investors’ funds as promised, and misappropriating and converting investors’ funds to benefit Madoff, himself, and others without the knowledge or authority of the investors. To execute the scheme, Madoff solicitedRead MoreBernie Madoff Scandal1197 Words   |  5 PagesBernard Madoff was born in Queens, New York to an honest Jewish family. He graduated from Hofstra University with a Bachelor of Arts in political science. In 1960, Madoff opened up Bernard L. Madoff Investment Securities LLC, a penny stock trading company founded with $5000 that Bernie earned by working as a sprinkler installer and lifeguard. He grew his firm with the help of his father-in-law, Saul Alpern, into at one point the largest market m aker at the NASDAQ. Madoff Securities started off makingRead MoreBernie Madoff Apa Paper1300 Words   |  6 PagesBernard Lawrence â€Å"Bernie† Madoff Shamele Jones Strayer University ENG 215 Professor Erica Ellsworth August 05, 2011 Thesis Bernie Madoff was one of the most prolific Ponzi-scheme artists in history. Madoff schemes netted him millions of dollars. Mr. Madoff used his BMIS Bernard L. Madoff Investment Securities a New York Limited Liability company, to commit fraud, money laundering, and perjury. This is just a few things that Mr. Bernard Madoff has done to many innocent investors, who