Bernie Madoff Case Study

Bernie Madoff was a wellspring known and a well-liked human being on Wall Street. Madoff had an spotless reputation, not only in the enthronement market, but socially, also: Nasdaq made him its chairman; the Securities and vary Commission appointed him to diligence panels; Madoff was even able to place with the Wilpons, owner of the New York Mets, for his staffers to melt down charity softball games on the field at Shea orbit  (Bandler et al. 52). That is why the nation was out(p) to learn that on declination 11, 2008, Bernie Madoff was arrested 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 flourish Ponzi avoidance at his investment company, Bernard Madoff Investment Securities, with the assistance of free-spoken DiPascali. DiPascali was accountable for overseeing the seventeenth infrastructure, the view where the illegitimate business trades occurred (Bandler et al. 50). Madoff conducted the Ponzi scheme in the fol slumping representation: he would receive investments from external investors; he would, in turn, practice session those funds to pay superior investors. The funds that Madoff received were never used to make positive trades; the company, instead, produced fictitious trades. To keep suspicions low in the investors, Madoff had the staffers of the seventeenth floor create fictitious quarterly statements to mail out. The investors were pleased with the returns that the statements reports, so no suspicions ever arose (Dodge The engine room Behind  22).\nAlthough suspicions never arose with the investors, suspicions did, however, explicate with the Securities and Exchange Commission. The SEC, on at least five occasion beginning in 1992, investigated Madoff and his company. On each occasion, though, the SECs auditors never uncovered any fraudulent activities, which allowed Madoff to slide by the illegitimate business trades for an encompassing period of time (Rhee 366). Madoff go on ...