Madoff 's Scheme : Ponzi Scheme Essay

Madoff 's Scheme : Ponzi Scheme Essay

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Madoff’s Scheme

“The Whole Government is a Ponzi Scheme” is a quote by Bernard “Bernie” Madoff who was said to have ran the largest Ponzi Scheme in the U.S. Madoff was 71 years old when he was caught for running a Ponzi Scheme. He ran a family business and through that he ran his Ponzi Scheme. He told no one until 10 years after his family business took off. Madoff’s was quite successful in his life, before he made his mistake. His Ponzi Scheme hurt many people who invested in the company, not knowing that it was a swindle all along. Madoff could have avoided this whole issue if he would have just stuck to ethical business practices. He could have done business like he did at NASDAQ, he must have done something right for him to be at a high level of authority there. Madoff had plenty of options to help his investors ethically, yet he chose the one road that cost him freedom and family.
What is a Ponzi Scheme? A Ponzi scheme is a fraudulent investment business where the businessman, a person or company, pays returns to its investors from money by new investors, rather than from profit earned from a legitimate source. It is called a Ponzi Scheme after Charles Ponzi, the original Ponzi Schemer. Charles’ Ponzi Scheme was, he bought overseas stamps and exchanging them for U.S stamps which were more expensive. He sold the U.S stamps for a profit of about $250,000 per day. With those profits, he bought a mansion in Lexington, Massachusetts, which made others question how he had the money to pay for such a life. Ponzi was caught in August 1920, when The Boston Post began investigating his “company”. The investigators had investors go in and try to take their money out, but they couldn’t. Charles Ponzi was arrested on August 12, 1920, w...


... middle of paper ...


... good-looking scheme going for quite some time, but look where his unethical decision got him.
Madoff’s scheme took billions from his investors, he had a great sales pitch and people fell for it. They did not read the clear signs shown to them, which is what let to such loss. Nothing is ever perfect, the world, people, life in general, nothing. So why did his investors blindly agree to a billion-dollar investment without reading the fine print? What could Madoff have done differently? Madoff could have remained running his business ethically. He had a small family business firm that was slowly flourishing. Yet he threw it all away, for what? Many believe it was the money, as the bible quotes “For the love of money is a root of all kinds of evil”. Madoff had plenty of options to help his investors ethically, yet he chose the one road that cost him freedom and family.

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