Essay about Bernard Madoff And The Madoff

Essay about Bernard Madoff And The Madoff

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Bernard Lawrence Madoff, better known as Bernie Madoff, was born on April 29, 1938 in Queens, New York. He was a hedge-fund investment manager and the chairman of the NASDAQ stock market. Madoff who was raised in a predominantly Jewish neighborhood went on to continue his studies at the University of Alabama, later transferring to Hofstra University where he earned his political science degree. From there, he went on to study law at the Brooklyn Law School, though only for a short period of time, Madoff founded Bernard L. Madoff Investment Securities with his wife Ruth, in 1960. Considering his many achievements to get where he was at that point in time, Madoff is known best for his infamous Ponzi scheme. His list of clients include celebrities such as; Steven Spieldberg, Kevin Bacon, Kyra Sedgwick, Elie Wiesel, Sandy Koufax, Larry King and Jeffrey Katzenberg just to name a few. His company name was Bernard Madoff Investment Securities (BMIS), and even though on paper he was the founder of the group, it’s fair to say his family was also part of the founding process. His business was meant to return clients 10percent annually from what they invested, although this was manageable for his company, most of it stood against the laws of the SEC.
Madoff’s Ponzi scheme all started when his main concern was to befriend and stay close to the wealthy individuals who lived in Palm Beach, Florida and New York City, New York. After having them signed as investors to his company, he would pay them very handsome returns and in gaining their trust, they would give him extremely positive feedback, which would eventually attract more investors. In addition, Madoff would capitalize on his business having this foresight of exclusivity. His promise ...

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...Not only that but they give whistleblowers an incentive to rattle out the crook in question. Even though many blame the SEC for being understaffed and underfunded, and JP Morgan Chase for not questioning Madoff’s returns, there’s still one more responsible party, and that’s the auditing firm. The auditing firm in question was Friehling & Horowitz, CPAs, P.C. (F&H). According to the SEC, Friehling & Horowitz would claim to be auditing financial statements and disclosures of Bernard Madoff Investment Securities (BMIS). An auditor’s primary responsibility is to plan and perform an audit in order to have assurance that the financial statements are free of error and are answered truthfully and not in pursuance of fraud. The auditor’s choice to commit securities fraud with the help of a multi-billion dollar Ponzi scheme was not a choice of ethics but rather one of greed.

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