Madoff Case
20102004 Thi Ngoc Thuy Do 1. What are the ethical issues involved in the Madoff case?
Bernard Madoff was accused of fraud and creation of a Ponzi scheme which lead to a $65 billion investment loss for hundreds of investors in over the world. Bernard Madoff started a legal business by buying and selling over the counter stocks that were not listed on NYSE. He deceived many people into thinking his operation as legitimate, and completely abused his respectable name and position of power for his own personal advances. He lied to his friends and clients from the beginning and as later documented in his allocution, he never invested any of the money he got. He became a thief. Madoff started a Ponzi scheme on levels never seen before. Madoff stole from friends, family and investors. Madoff did not invest the money as he promised; he simply used it to pay off the first set of investors at very high return rates (10-12%), so he could attract more money. There were also jobs given to family members who could have helped the scheme. Madoff’s daughter was also married to a former Securities and Exchange Commission attorney. His company’s financial reports were never made public during the time of the scheme. I wonder how his company passed the tax audition imposed question on the SEC internal system. There is a big question for US government system.
2. Do you believe that Bernard Madoff worked alone, or do you think he had help in creating and sustaining his Ponzi scheme? Would this represent a conflict of interest? "Speaking as a Jew on Christmas, I would be less shocked if Santa Claus showed up to my house than if Bernie Madoff pulled off this fraud alone," says Ron Geffner, a partner at law firm. So,I definitely believe Bernard Madoff did not work alone, he had help in creating and sustaining his Poniz scheme for 30 years. Without his accountants, family members, and other employees covering up his tracks, he wouldn't have
Bernard Madoff was accused of fraud and creation of a Ponzi scheme which lead to a $65 billion investment loss for hundreds of investors in over the world. Bernard Madoff started a legal business by buying and selling over the counter stocks that were not listed on NYSE. He deceived many people into thinking his operation as legitimate, and completely abused his respectable name and position of power for his own personal advances. He lied to his friends and clients from the beginning and as later documented in his allocution, he never invested any of the money he got. He became a thief. Madoff started a Ponzi scheme on levels never seen before. Madoff stole from friends, family and investors. Madoff did not invest the money as he promised; he simply used it to pay off the first set of investors at very high return rates (10-12%), so he could attract more money. There were also jobs given to family members who could have helped the scheme. Madoff’s daughter was also married to a former Securities and Exchange Commission attorney. His company’s financial reports were never made public during the time of the scheme. I wonder how his company passed the tax audition imposed question on the SEC internal system. There is a big question for US government system.
2. Do you believe that Bernard Madoff worked alone, or do you think he had help in creating and sustaining his Ponzi scheme? Would this represent a conflict of interest? "Speaking as a Jew on Christmas, I would be less shocked if Santa Claus showed up to my house than if Bernie Madoff pulled off this fraud alone," says Ron Geffner, a partner at law firm. So,I definitely believe Bernard Madoff did not work alone, he had help in creating and sustaining his Poniz scheme for 30 years. Without his accountants, family members, and other employees covering up his tracks, he wouldn't have