Bernie Madoff Case Study

Bernie Madoff was a well known and a well-liked man on fence Street. Madoff had an impecc satisfactory reputation, not except in the investment market, scarcely socially, too: Nasdaq made him its head; the Securities and Exchange Commission ordained him to industry panels; Madoff was even able to arrange with the Wilpons, owner of the parvenu York Mets, for his staffers to play charity softball games on the field at Shea Stadium  (Bandler et al. 52). That is why the body politic was stunned to learn that on December 11, 2008, Bernie Madoff was take holded on charges of theft of billions of dollars from his clients over the decades prior to his arrest (Dodge The IT Secrets  26).\nBernie Madoff ran an elaborate Ponzi scheme at his investment company, Bernard Madoff Investment Securities, with the economic aid of Frank DiPascali. DiPascali was accountable for overseeing the seventeenth floor, the location where the illegitimate condescension trades occurred (Bandler et a l. 50). Madoff conducted the Ponzi scheme in the side by side(p) way: he would absorb investments from outside investors; he would, in turn, use those funds to carry senior investors. The funds that Madoff accredited were n of all conviction used to suck actual trades; the company, instead, produced untrue trades. To spare suspicions low in the investors, Madoff had the staffers of the seventeenth floor create fictitious quarterly statements to mail out. The investors were prosperous with the returns that the statements reports, so no suspicions ever arose (Dodge The Technology Behind  22).\nAlthough suspicions never arose with the investors, suspicions did, however, arise with the Securities and Exchange Commission. The SEC, on at least five occasions beginning in 1992, investigated Madoff and his company. On each occasion, though, the SECs auditors never uncovered any unsound activities, which allowed Madoff to continue the illegitimate communication channel trades f or an extended period of time (Rhee 366). Madoff continued ...