(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Bernie Madoff's Ponzi Scheme

             Madoff was arrested for his involvement in a Ponzi scheme that had been going on for about 20 years. In 1960, Madoff started his own company called Bernard L. Madoff Securities, which was created to match up stock buyers and sellers who were looking to trade smaller stocks. The motivation one would have to research the topic on the Bernie Madoff Ponzi scheme would be a result of the scandal constantly being spoken about on the news. Thus once intrigued by the recent scandal, one may wish to seek more knowledge on the issue. .
             The Bernie Madoff scandal poses many concerns on the topic of business ethics, as well as posing an impact on the accounting community. It also becomes a present-day example of can occur in the business world behind closed doors. Bernard L. Madoff Securities did not really begin to effectively take off until between the 1970's and the 1980's. The reason for the company's growing success was due to a practice called "pay for order flow", where the company was able to profit 12.5 cents from the buying and selling price on every stock that was traded. Although it has not yet been verified, Madoff admits that the fraud began in the 1990's. Due to a recession, the company's investments in the security markets were expected to have problems. Madoff felt it was necessary to please his clients even through the recession and thus would do anything to achieve this. From this time on until Madoff was caught and charged with fraud, the company continued to run illegal practices.
             Madoff continued his fraudulent ways as the years went on and his hedge fund company kept growing financially. Although most of Madoff's felonies were difficult to detect,.
             This study resource was shared via CourseHero.com the company did in fact give off many signs of fraudulency. After Frank Casey, former vice president of marketing for Rampart Investment Management, had spoken with a man named Henry Markopolos, Casey and Markopolos come to the realization that Madoff's hedge fund company could perhaps be what they call, "a Ponzi scheme".

Essays Related to Bernie Madoff's Ponzi Scheme

Got a writing question? Ask our professional writer!
Submit My Question