Bernie Madoff Case Study

Bernie Madoff was a well known and a well-liked man on surround Street. Madoff had an impecc up to(p) reputation, not lone(prenominal) in the investment market, save socially, too: Nasdaq made him its death chair; the Securities and Exchange Commission official him to industry panels; Madoff was even able to arrange with the Wilpons, owner of the rude(a) York Mets, for his staffers to play charity playground ball games on the field at Shea Stadium  (Bandler et al. 52). That is why the landed estate was stunned to learn that on December 11, 2008, Bernie Madoff was entranceed on charges of stealth 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 supporter of Frank DiPascali. DiPascali was accountable for overseeing the ordinal floor, the location where the illegitimate transaction trades occurred (B andler et al. 50). Madoff conducted the Ponzi scheme in the pursuit way: he would earn investments from outside investors; he would, in turn, use those funds to move over senior investors. The funds that Madoff standard were n constantly used to function actual trades; the company, instead, produced unreal trades. To progress suspicions low in the investors, Madoff had the staffers of the seventeenth floor create fictitious quarterly statements to mail out. The investors were jocund with the returns that the statements reports, so no suspicions ever arose (Dodge The Technology Behind  22).\nAlthough suspicions neer arose with the investors, suspicions did, however, arise with the Securities and Exchange Commission. The SEC, on at least quintette occasions beginning in 1992, investigated Madoff and his company. On each occasion, though, the SECs auditors neer uncovered any double-dealing activities, which allowed Madoff to continue the illegitimate avocation trades for an extended period of clipping (Rhee 366). Madoff continued ...