Bernie Madoff Case Study

Bernie Madoff was a well cognise and a well-liked man on Wall Street. Madoff had an impeccable reputation, non only in the investiture market, but socially, too: Nasdaq do him its chairman; the Securities and sub rush appointed him to industry panels; Madoff was as yet able to arrange with the Wilpons, proprietor of the New York Mets, for his staffers to play good-will softball games on the dramatic art at Shea Stadium  (Bandler et al. 52). That is why the nation was stunned to pack that on December 11, 2008, Bernie Madoff was arrested on charges of theft of billions of dollars from his clients over the decades prior(prenominal) to his arrest (Dodge The IT Secrets  26).\nBernie Madoff ran an elaborate Ponzi turning away at his investment compevery, Bernard Madoff investment cash in hand Securities, with the assistance of Frank DiPascali. DiPascali was responsible for overseeing the seventeenth floor, the location where the illegal business trades occurred (Bandler et al. 50). Madoff conducted the Ponzi scheme in the following way: he would receive investments from outside investors; he would, in turn, use those monetary resource to pay senior investors. The funds that Madoff received were never use to make actual trades; the company, instead, produced put on trades. To keep suspicions low in the investors, Madoff had the staffers of the seventeenth floor clear fictitious quarterly statements to place out. The investors were pleased with the returns that the statements reports, so no suspicions ever arose (Dodge The Technology behindhand  22).\nAlthough suspicions never arose with the investors, suspicions did, however, arise with the Securities and Exchange Commission. The SEC, on at least(prenominal) five occasions line in 1992, investigated Madoff and his company. On to each one occasion, though, the SECs auditors never uncovered any fraudulent activities, which allowed Madoff to continue the illegitimate business trades for an e xtended block of time (Rhee 366). Madoff continued ...