Essay about Frauds Of The Century By Bernard Madoff

Essay about Frauds Of The Century By Bernard Madoff

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Frauds of the Century



In 2008 one of the longest running Ponzi Schemes came to an end. Bernard Madoff had successfully stolen money from thousands of people from all walks of life. In the last 100 years there have been multiple cases of people pulling forms of fraud on others with the goal of tricking them out money or other items claiming to invest the money or items with a promise of consistent monetary returns. Many questions come to mind when talking about this problem. Team 3 will conduct a case study analysis to get to the bottom of the problem with Ponzi and Pyramid and recommend solutions to help prevent these schemes from continuing to happen.

After the Madoff scheme came to light Ponzi schemes were brought to the attention of everyone as this was one of if not the biggest scheme in history. It seems that a lack of morals and/or ethics is what the nature of this problem. The essential elements and factors of the problem is that those perpetrating the scheme are people who are seen as trustworthy, powerful, affluent, and charming and are willing and able to defraud strangers and/or friends and family through illegal Ponzi and Pyramid schemes. If there is suspicion of foul play and it is brought to the attention of the SEC the red flags are ignored and investigations are botched due to objective reviews that are not handled appropriately which can be due to the investigators views on the people manipulating the scheme as powerful trustworthy just like the investors.

When a fraud takes place there are stakeholders as typically a business is associated with the fraud. One of the stake holders is the person who is the schemer, other stakeholders are the victims who invested their mon...


... middle of paper ...


... such as stealing and lying just to better oneself.

In this case study we examined the problem with Ponzi and Pyramid schemes and solutions to keep them from happening. The biggest part that has to change and what it all comes down to is people’s personal ethics, values, and morals. As much as one would like to believe that people’s morals and convictions can change from bad to good, this is unlikely. The step to take is to teach them from the beginning, which I feel most try to do. For some high morals or good choices are never taught from an early age so how can one expect that everyone will follow and believe in the “good” when it was not shown to them in the beginning? It is time to let go of greed and power and work together to build a better world where people like Bernie Madoff doesn’t even have the opportunity to get away with such a fraud again.

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