Bernard Lawrence Madoff is a capitalizing mastermind. Madoff Investment Securities, a wealth management business, with 5,000 dollars he saved while working as a lifeguard. Through what was perceived as elaborate business tactics and a keen ability for bourgeoning money as a broker/seller, he fashioned his company into a lucrative business worth billions of dollars. Yet, forty-nine years later, he confesses to the largest ponzi scheme scandal the world has ever known. .
The Bernard "Bernie" L. Madoff scandal is of epic proportions. No one in the history of investments has ever defrauded so much money from banks, companies, and individuals as he did. Not even the Chicagoan lawyer, turned master conman, Leo Koretz, comes close to Madoff. In the 1920's Koretz stole through fraudulent pyramids scams 400,000 millions dollars, based on today's value. Through a fraudulent investment operation Madoff managed to steal for himself 20 billion dollars of principal funds that were invested through his company. In 2009 Madoff was convicted of eleven felony charges that include, fraud, perjury, money laundering, and false filings with the U.S. Security Exchange Commission (SEC). He was sentenced to remain in jail until 2139, a day that he will never see. .
The aforementioned scandal holds within itself invaluable lessons for business administration students, investors, entrepreneurs, businessmen and the like regarding corporate ethics, organizational behavior, governance, and social responsibility. Therefore, the largest ponzi scheme in human history is worth revisiting. This essay presents and analysis of the Madoff scandal from a business ethics point of view. To successfully achieve this, triggering factors will be presented, the company's actions will be critiqued, and solutions that could have been employed will be presented. Additionally, an evaluation of regulatory practices that stemmed from the scandal and author's recommendation will be presented.