ipl-logo

Bernard Madoff's Multibillion Dollar Ponzi Scheme

491 Words2 Pages

Bernard Madoff was a stockbroker who used his own investment company to run a multibillion-dollar Ponzi scheme. It was a family run business that his father in law, a retired CPA, helped him start up. On December 10, 2008, Madoff’s sons found out about this scheme and reported their father to the police. The next day, Bernard Madoff was arrested and charged with securities fraud. While Madoff is not the first person to create a Ponzi scheme – and unfortunately not the last – his accrued the most money in the entire history of Ponzi schemes.
A Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. Madoff’s

Show More
Related

  • Robber Barons In The Gilded Age

    1777 Words  | 8 Pages

    One example was Robert Cumming Schenck. Appointed as U.S. minster to Great Britain in 1870 by Ulysses S. Grant, Schenck arrived in London on June 23rd, 1871. While he was there, Schenck exploited his investment in the Emma Silver mine in Nevada, “selling near worthless stock to unsuspecting British investors at the same time he was supposed to be carrying out his official duties” (Grossman). By using said methods, Schenck was able to gain over €10,000 worth in stock investments, which in the present would be worth over €850,000 or around $1,300,500. Schenck, though accused of fraud, was able to be cleared of charges and returned home in May 1876, money in hand.

    Read More

  • Was Charles Katz Illegal

    252 Words  | 2 Pages

    Charles Katz was convicted of interstate gambling, which is illegal under the federal law. Katz was one of the best basketball handicappers. He made his money with interstate gamblers. He’d place a bet for the gambler and keep a share of the winnings. The FBI, however, soon caught on.

    Read More

  • Mickey Monus

    742 Words  | 3 Pages

    In this paper I will be analyzing the research on Mickey Monus and his fraud crimes. I will exam the fraud and how it applies to this course, such as where it belongs on the fraud tree. Along with what type of fraud was committed, and how they got away with it for so long. Mickey Monus, the former president of the most successful multi-billion-dollar discount drug chain in American history, is from a town in Ohio called Youngstown.

    Read More

  • The Pros And Cons Of Robber Barons

    638 Words  | 3 Pages

    P. Morgan, Andrew Carnegie, and Henry Ford could be termed as robber baron from the means in which they run their businesses. These men had high levels of government influence to help protect their vast empires, paid low wages to workers to keep profits high, and had a great control over the nation’s resources and business infrastructure (Perry and Smith, 308). These industrialists built empires by crushing competitors and acquiring their businesses to create monopolies and raise the prices for their own gain. They used unscrupulous schemes to trade stocks at exorbitant prices to other investors, destroying the worth of such companies, and eventually making them go bust so that they could be left in

    Read More

  • Ulysses S. Grant Research Paper

    1275 Words  | 6 Pages

    He would entice investors to give him money, and then illegally use that money as “collateral” for multiple loans. “Investment dividends” were paid out regularly to give the impression of successful management, but this money was simply contributions from other investors. Ward, quite simply, was the Bernard Madoff of the

    Read More

  • Al Capone Research Papers

    800 Words  | 4 Pages

    Al Capone was one of the scandalous gangsters of the 1900’s. He made millions of dollars from various illegal businesses. From bootlegging to gambling, he was making money. He didn’t care who he hurt. He also didn’t care what he had to do to get to the top.

    Read More

  • Gilded Age Industrialization And The Panic Of 1873

    671 Words  | 3 Pages

    One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves.

    Read More

  • Magear Tweed And Animal Cruelty

    256 Words  | 2 Pages

    He was convicted for stealing an estimated estimated $25 million to $45 million from New York City taxpayers through political corruption. He was brought to justice by someone in his inner corruption circle spilling information to the New York Times. 2. Credit-Mobilier Scandal- Transcontinental

    Read More

  • Greed: Bernie Madoff Fraud Case

    153 Words  | 1 Pages

    Greed is the only option that can support Bernie Madoff decision on becoming a criminal. He was already well off from the start of his parents under the table schemes he just wasn’t satisfied. According to biography.com the Madoff parents seems to have started their under the table schemes in the 1960s when he was just a child, they started when his mother registered as a broker-dealer and listed their home as an office and called the company Gibraltar Securities following that the SEC forced the closure of the business for failing to report its financial condition. The only thing that can refute he did the right thing by engaging in fraud was he was following his mother guide on running the business and his business traits were passed down

    Read More

  • Why Is It Important To Bernie Madoff's Greed?

    378 Words  | 2 Pages

    Bernie Madoff’s reputable stock trading business, venerable reputation as a Wall Street insider, and ingenuity as a fraudster enabled him to dupe experienced wealthy investors and bilk them for billions of dollars (Ferrell, 2009). Madoff understood how to leverage the currency of relationships to establish trust, the significance of exclusivity to attract wealthy clients, and how to covertly appeal to people’s greed (Frontline, 2009). As a result, Madoff leveraged his credibility as a Wall Street insider to disarm investors, insisted that his services could only be contracted by invitation only, and failed to charge fund management fees. Subsequently, Madoff enable feeder fund managers to make more money in fees, which resulted in more aggressive

    Read More

  • Bernie Madoff Case

    510 Words  | 3 Pages

    In the event that without a doubt, $50 billion was lost, as evidently Madoff claims, it is the biggest such extortion ever, and one that may even disgrace the conman whose name is joined to this brand of misleading. In 1920, Charles Ponzi, an Italian foreigner, started promoting that he could make a half return for speculators in just 45 days. Unimaginably, Ponzi started taking in cash from all over New England and New Jersey. By July of 1920, he was making millions as individuals sold their homes and contributed their life investment funds. Similarly as with all cheats, he was found to have a correctional facility record and was arraigned on 86 tallies of extortion.

    Read More

  • Bernie Madoff's Role In The Judicial System

    670 Words  | 3 Pages

    If they know what to do and how to do it, then those people can go under the radar for a while. Take Bernie Madoff for example. He knew how to play the system and got off with peoples’ money for a few decades. Madoff was well-known and played active roles in the financial industry. Aside from playing his role so well, Madoff tended to be very careful in what he did, and the police had no idea what was going on, and people trusted him.

    Read More

  • Horatio Alger Ragged Dick Greed Quotes

    512 Words  | 3 Pages

    When Dick takes Frank around New York, it seems like every five minutes that he’s pointing out another swindler on a street corner or a “swindlin’ shop” with “[men] that are regular cheat[s].” (27) Most of these people appear to be of the same class as Dick, and determined as much money as possible, no matter the consequences or negative effects it may have on those around them?. However, Alger also shows that large corporations can be greedy cheats as well. Dick says “Some of these mining companies are nothing but swindles, got up to cheat people out of their money.” (33).

    Read More

  • Whistleblowing System In The Film Chasing Madoff

    1179 Words  | 5 Pages

    “Chasing Madoff”, a documentary released in 2010 portrays the way the whistleblower, Harry Markopolos, uncovered Bernie Madoff’s fraud scheme and his ten-year struggle to get the SEC to investigate. The documentary begins with an introduction to Harry Markopolos and his former coworkers Frank Casey and Neil Chelo. The three men work in finance, with investment portfolios. They were aware that in the finance industry there was much talk about an investment company making their customers high returns. Casey came across some investment information from a client of Madoff and gives the information to Markopolos to look over.

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

    Read More

More about Bernard Madoff's Multibillion Dollar Ponzi Scheme

Open Document