Madoff Ponzi Scheme

735 Words3 Pages
Bernie Madoff created Bernard L. Madoff Investment Securities in 1960 by purchasing penny stocks not listed on the New York Stock Exchange (NYE) (Ferrell, Fraedrich, & Ferrell, 2013). He was a well-respected financier, until his fall from grace. Now he has been convicted of operating a massive Ponzi scheme that went undetected for decades. Prior to the fall of Madoff, his investment firm was a top-rated successful organization. Various family members were employed including his two sons, brother, and wife. It was considered an elite company, offering moderate and consistent returns, nothing considered excessive or over-the-top, and never lost in a down market (Frontline, 2009). As the business became successful, Bernie moved the headquarters from Wall Street to Third Avenue, began lobbying for deregulation to lessen the complicated rules for electronic trading, became chairman of the NASDAQ from 1990 through 1993, served on a government advisory board, created his own…show more content…
Yet, the Madoff Ponzi scheme appears intricately designed, longer withstanding, and executed exclusively by Madoff. Both men lobbied to deregulate the government role in each of their perspective fields and each organization had a lack of transparency in record keeping. Madoff used a single accountant an hour away from New York which he claims was to hide his success method (Frontline, 2009). Enron’s accountants played duplicate roles within the company, creating a conflict, and each organization hired inexperienced employees that would not raise alarms or question workplace functions. The levels of deceit for both cases branched out to involve lawyers, accountants, and other investors. Yet, where they differ is Ken Lay’s deceit branched out much farther, and he did not take accountability, whereas Madoff assumed all responsibility for the wrongdoing, claiming he was solely accountable (Ferrell, et al,
Open Document