Essay on The Bernard Madoff Investment Scandal

Essay on The Bernard Madoff Investment Scandal

Length: 2631 words (7.5 double-spaced pages)

Rating: Research Papers

Open Document

Essay Preview

Bernard Madoff had full control of the organizational leadership of Bernard Madoff Investments Securities LLC. Madoff used charisma to convince his friends, members of elite groups, and his employees to believe in him. He tricked his clients into believing that they were investing in something special. He would often turn potential investors down, which helped Bernard in targeting the investors with more money to invest. Bernard Madoff created a system which promised high returns in the short term and was nothing but the Ponzi scheme. The system’s idea relied on funds from the new investors to pay misrepresented and extremely high returns to existing investors. He was doing this for years; convincing wealthy individuals and charities to invest billions of dollars into his hedge fund. And they did so because of the extremely high returns, which were promised by Madoff’s firm. If anyone would have looked deeply into the structure of his firm, it would have definitely shown that something is wrong. This is because nobody can make such big money in the market, especially if no one else could at the time. How could one person, Madoff, hold all of his clients’ assets, price them, and manage them? It is clearly a conflict of interest. His company was showing high profits year after year; despite most of the companies in the market having losses. In fact, Bernard Madoff’s case is absolutely stunning when you consider the range and number of investors who got caught up in it.
Bernard Madoff – Case Summary
Bernard Madoff opened his firm in 1960. His business began to grow when his father-in-law Saul Alpern, who was an accountant, came to the firm. Because there were a lot of competitive firms at that time, Madoff decided to use innova...

... middle of paper ...

... The Wall Street Journal.
Web site:
Berenson, Alex; Henriques, Diana B. (December 13, 2008). "Look at Wall St. Wizard Finds Magic Had Skeptics". The New York Times.
Web site:
Hamilton (December 13, 2008). "Madoff's reliable returns aroused doubts". LA Times.
Web site:
Harris, Larry (2003). Trading and Exchanges: Market Microstructure for Practitioners. Oxford University Press. p. 290.
Web site:
Scannell, Kara (January 5, 2009). "Madoff Chasers Dug for Years, to No Avail". The Wall Street Journal.
Web site:
Biggs, Barton (January 3, 2009). "The Affinity Ponzi Scheme". Newsweek.
Web site:
Creswell, Julie (January 24, 2009). "The Talented Mr. Madoff". The New York Times.
Web site:

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Financial Scandal Of Bernie Madoff Essay

- 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]

Research Papers
1697 words (4.8 pages)

Case Presentation Of Madoff Scandal Essay

- I’m doing my Case presentation on the Madoff Scandal because I find it very interesting and have heard about it before and wanted to know more details about the story. Like who were the major players and how much money did he really steal from people. Bernard Lawrence Madoff was born April 29, 1938 in New York City. His Parents became involved in financing jobs when he was at a young age and were both suspected of starting a business as a front for his father, Ralph Madoffs’, backhanded dealings....   [tags: Bernard Madoff, Ponzi scheme, Securities fraud]

Research Papers
1574 words (4.5 pages)

Essay about The Case For Bernie Madoff

- 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]

Research Papers
1288 words (3.7 pages)

Bernie Madoff : The Greatest Investors Of All Time Essays

- Bernie Madoff was once revered as one of the greatest investors of all time. He helped create the National Association of Securities Dealers Automated Quotients or NASDAQ. Later he served as president of the board of directors for the NASDAQ stock exchange. He claimed he could get returns on investments in the double digits in high and low markets. Bernard Madoff also executed one of the largest Ponzi schemes in American history. Madoff was born in the late 1930s in New York. His parents were working class immigrants....   [tags: Bernard Madoff, Ponzi scheme, NASDAQ]

Research Papers
1667 words (4.8 pages)

The Madoff Ponzi Scheme Essay

- 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]

Research Papers
3353 words (9.6 pages)

Bernie Madoff Scandal Essay

- Bernard Madoff was born in Queens, New York to an honest Jewish family. He graduated from Hofstra University with a Bachelor of Arts in political science. In 1960, Madoff opened up Bernard L. Madoff Investment Securities LLC, a penny stock trading company founded with $5000 that Bernie earned by working as a sprinkler installer and lifeguard. He grew his firm with the help of his father-in-law, Saul Alpern, into at one point the largest market maker at the NASDAQ. Madoff Securities started off making markets via the National Quotation Bureau’s Pink Sheets; but in order to gain an advantage on competing firms, began using innovative computer software that projected quotes in seconds rather th...   [tags: Jewish, Biography, New York]

Research Papers
1205 words (3.4 pages)

The Lying Crisis if Bernie Madoff Essay

- "I swear to tell the truth, the whole truth, and nothing but the truth." Nearly every American citizen knows this phrase by heart; however, lying is a part of human nature. With an epidemic of perjury and false statements occurring at the highest levels of business, media, and politics; America is facing a crisis. More and more people are directing their focus on money, fame, and power. These people will take whatever steps possible to gain high levels of wealth while unknowingly allowing these priorities to shatter their lives and those around them....   [tags: money, pinzi scheme, fincancial]

Research Papers
2271 words (6.5 pages)

The Collapse of the Madoff Pyramid Essay

- ... Somewhere in his life, he decided that the millions he was making was not enough, and began to pull off the fraud of the century. In business, stakeholders are those who are affected by an organization, member, or system. In the case of Madoff, there were two types of victims, the net losers and the net winners. Net losers are those who put in more money initially than they ended up receiving. Net winners are those who recouped their original investment plus profits (Ferrell, Fraedrich, Ferrell 2012)....   [tags: Ponzi schemes, frauds]

Research Papers
1931 words (5.5 pages)

Revolves Around Three Villains : Dotcom, Hilton, And Assange Essay

- Klosterman’s essay revolves around three villains: Dotcom, Hilton, and Assange. These people mostly dug their hands into copy righted information and used it to, according to Klosterman, cause villainy. After digging through photos and researching sites I realized that these issues where a lot deeper than that. A lot of the villainy taking place with these three people are tampering with the holes in our rights and it’s stirring into the issues that have already been going on around us. D. Reading Four Essay Klosterman describes villainy as a selfish act using technology to help themselves no matter how much harm it does to the people around them....   [tags: Ponzi scheme, Bernard Madoff, Irving Picard]

Research Papers
737 words (2.1 pages)

Essay about Bernard Madoff And The Madoff

- 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....   [tags: Bernard Madoff]

Research Papers
966 words (2.8 pages)