Madoff Case Essay

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Madoff Case Bernie Madoff has become known to many people as the man that perpetrated by far the largest scam in the history. His reputation of a successful investor, financial genius, and a chairman of NASDAQ took a turn for the worst when his so called split strike conversion strategy turned out to be nothing but a huge Ponzi scheme affecting thousands of investors from around the globe. How we can understand a white collar crime, that represent a $65 billion on gains and almost $18 billion of looses to investors. Well, the case that I will present is the one that almost freak out Wall Street. The case of Bernard L. Madoff will remain etched in the memory of investors and traders for the unparalleled example of Ponzi scheme that it set and as the most financially devastating crime. Bernard Madoff; also known as Bernie Madoff, was involved in 'Ponzi Scheme' which is predominantly a financial scam. Ponzi scheme is characterized by investment operations where returns are paid to the investors by their own money or from that of other investors. Earnings are usually low because so as to entice investors, higher returns are used thereby inducing lower income for the owner. This lower income prompts the owner into paying returns to investors from other investors' money rather than the profit. Bernard Madoff is former chairman of NASDAQ and known Wall Street trader owning securities firm by his name, Bernard L. Madoff Investment Securities LLC (BLMIS). (Research, 2010). It is through the investment management and advisory department of this firm through which he undertook one of the major financial scams and operated so since 1990 until his indictment. A successful investor and former stock broker, Madoff founded BLMIS in 1960 and continued to be the chairman of the firm until his arrest in the December of 2008. Although doubts were raised about his scheme as
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