“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.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Introduction Bernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960’s through the 1990’s, Madoff’s success and business grew substantially, mainly from a closed circle of known investors and friends through word of mouth. In the 1990’s Bernard L. Madoff Investment Securities traded up to 10 percent of the NASDAQ on any given day. With the success of the securities business, Madoff started an illegal money-management business, promising his investors consistent returns from 10-12 percent, unheard of returns at the time, which should have tipped off most investors... [tags: Bernie Madoff, pyramid scheme, scam, con man]
3353 words (9.6 pages)
- The case that was provided in the Stanwick textbook provided information on the Madoff Ponzi scheme which is said to be the largest of Ponzi schemes in the world. This case was a very interesting case. It showed how Bernard Madoffs massive falsehood created disaster for around 13,600 clients. The impact from Madoff did not end with his clients being impacted but also people far and in between. Madoffs Ponzi scheme was controlled through his company that consisted of his family being the head of the company, friends, and employees.... [tags: Bernard Madoff, Ponzi scheme]
857 words (2.4 pages)
- Introduction The Bernie Madoff Ponzi Scheme is a well-known case and is known as one of the biggest Ponzi scheme’s. In summary the scheme occurred for many reasons that I will some up into 3 points; A lack in competency by regulatory agencies, a lack of regulation, and finally a breach in ethics by Bernie Madoff himself. To explain further, the regulatory agencies like the lawyers and SEC are supposed to prevent schemes such as this one from happening but because they lacked the skills to correctly assess the situation, interpreting the number of tips they had received regarding scheme that had been filed, and to act on those in an efficient manner.... [tags: American fraudster case]
2602 words (7.4 pages)
- There are many crimes in America that people would consider to be major crimes. Some may say murder rape or child abuse but I think Ponzi schemes are the greatest crimes that people commit. A Ponzi scheme uses "investor money to find a productive business venture the con orders channels the proceeds from new investors to pay interest to only earlier ones"( Basu, 2014 pg.1). Ponzi schemes can come in many different shapes and sizes. Those types of disguises makes scheme hard to detect and make it hard for people to take legal actions against a company.... [tags: Ponzi scheme, Bernard Madoff]
1653 words (4.7 pages)
- Bernard Lawrence Madoff, the brain behind the largest Ponzi scheme in American history, was born in 1938 during a depressing era. America just went through the Great Depression and was now headed into World War II. The Madoff family was Jewish, and Bernie grew up in a prodominitly Jewish community in Queens, New York. In high school, Bernie Madoff met his future wife, Ruth Alpern. Bernie and Ruth Madoff had two sons, Mark and Andrew. Madoff’s scam started through an affinity bunko scam, which led to an enormous Ponzi scheme.... [tags: scam artists]
1171 words (3.3 pages)
- Imagine owning a company that was in control of customer assets valued at $65 billion. Bernie Madoff was in this position through his company Bernard L. Madoff Investment Securities. Now imagine investing your entire retirement account with Madoff 's company, and losing it all. It turned out that Bernard L. Madoff Investment Securities was a Ponzi scheme that ran for many years under the appearance of a profitable company. A Ponzi scheme is a type of investment fraud. The return on investment promised by the fraudster is above average.... [tags: Bernard Madoff, Ponzi scheme]
1374 words (3.9 pages)
- On December 08, 2008, Bernie Madoff was arrested outside his apartment for being behind the largest financial scandal that the world has ever scene. Bernie Madoff, former NASDAQ chairman and founder of Bernard Madoff Investment Securities LLC, the company that was running a $64.8 billion Ponzi scheme for almost 20 years. The Wealth Management portion of Bernie Madoff’s firm was all one big lie; investigators estimated the firm had liabilities of $50 billion and $64.8 billion dollars of fraud amongst his 4,600 clients.... [tags: Bernard Madoff, Ponzi scheme]
1697 words (4.8 pages)
- 65 billion dollars of fraud, such was the case for Bernie Madoff. Bernard Lawrence Madoff by definition from the Columbia Electronic Encyclopedia, 6th Edition is an American stockbroker, investment manager, and swindler. He is widely known for hosting the largest Ponzi scandal in US history. He not only ruined others life’s but he also ruined his own and his families. He took money from investors to pay off other investors to make it seem like they were making a profit. All he had to do was report the “gains” there were making.... [tags: Bernard Madoff, Ponzi scheme]
1288 words (3.7 pages)
- In the 1960’s, Bernard L. Madoff Investment Securities opened its doors in New York. Thirty years later, the investment firm closes its doors after losing $50 billion dollars of approximately 2,200 investors money. With $50 billion dollars on the line, it’s hard not to ask: Who is Bernard Madoff. How did he steal $50 billion dollars. What happened to his victims. Before we can delve into what can be considered the biggest con in American history, we need to fully understand what white collar crime is and how it impacts society.... [tags: Bernard Madoff, Ponzi scheme]
835 words (2.4 pages)
- 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.... [tags: Morality, Ethics, Ponzi scheme, Bernard Madoff]
2128 words (6.1 pages)