Summary Of The Documentary 'The Madoff Affair'

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Recommended: The theory of white collar crime

In the Frontline documentary “The Madoff Affair”, it is revealed and painfully evident that the ability to predict, prevent, and prosecute white collar crime is flawed and highly complicated even for the government. Frontline takes a look at the first global Ponzi scheme in history and helps create a better understanding of the illegal conduct that led to the rise and fall of Bernie Madoff and those associated with his empire (Frontline, 2017). When the leadership at the top of any organization is founded on lies, secrecy, and empowered by the leaders within the industry, the corruption is deep and difficult to prosecute. The largest stock market fraud in history reinforces the need for better government regulations, enforcement of the regulations, and oversight, especially in it’s own backyard (Yang, 2014). …show more content…

Lies were the beginning of the end. Neither Madoff or his partners were licensed to be financial advisors for the number of clients they represented and they knew this. The client regulations stated that if you were not licensed then you could have no more than 15 clients and Madoff had 3,200 clients. This one simple violation could have shut down the entire operation if it had been enforced from the start.

The secrecy was another unethical factor that allowed this Ponzi Scheme to continue to grow. This fraudulent component would be agreed upon by Madoff and his clients and the incentivized feeder funds allowed the investors to turn a blind eye. He would not allow his clients to list him as the financial advisor and therefore dodged the surveillance and enforcement of the SEC.
Secrecy and lies continued to pave the way to the collapse of this financial

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