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The appraised full amount of the Madoff scheme was $65 billion, it is the leading financial fraud in the history of Wall Street to this day. On December 11, 2008 is when all of Madoffs unethical practices came out of the darkness and to realization of the public and other groups (Fitzpatrick, 2010). .
During the financial slump of the universal economy Madoff began to realize that the scheme would become terminated, closed; because the new depositors were declining which meant that soon Madoff would be unable to pay the present investors. For Madoff to elude suspicion he conveyed unassertive returns, but Ponzi schemes are pre-destined to flop because of the fact that in the long run you are going to have to pay out more to more people and the number of new investors will no longer be adequate (Wells, 2009). Madoff was born in 1938 on April 29, in 1956 from Far Rockaway High school Madoff graduated and he then went on to law school at Hofstra University but did not graduate. BMIS was created in the early 1960's using his savings from working a lifeguard job (about $5,000) and putting in refrigeration systems (Gregoriou & Lhabitant, 2009). In the 1980's Bernie industrialized the first electronic computerized stock exchange, using $250,000. BMIS was exchanging more than five percent of the trading volume on the NYSE, in 1989 (Gregoriou & Lahabitant, 2009). Because of the growth of the competition in the brokerage business Madoff formed his investment advisory company. .
Madoff started retailing over-the-counter stocks which were not on the list of the New York Stock Exchange (NYSE), Madoff made his proceeds in the discrepancy of the offer price and the sales price of the stocks, in the 1960's. In the 1990's Madoffs Company, Bernard L. Madoff Investment Securities LLC (BMIS), was doing ten percent of the trading on NASDAQ (National Association of Securities Dealers Automated Quotations) some days (Ferrell, Ferrell & Fraedrich, 2011).
