The Fraud of the Century

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Case 11: The Fraud of the Century: The Case of Bernard Madoff After reading the case of Bernard Madoff I have come to the following conclusion: You really cannot judge a book by its cover. Mr. Madoff began his career as an honest businessman, gaining the trust from not only family and friends, but his investors as well. As with many financial business professionals once they begin making lots of money they only want more. Unfortunately, Mr. Madoff sacrificed the interest of not only his investors but the public in pursuit of his own financial goals. Considered a white-collar crime, Mr. Madoff broke the law and deceived clients and investors in order to amass millions of dollars. The ethical issues came about when Mr. Madoff utilized his new investors’ money to pay off the earnings of his existing customers, instead of actually investing the funds he received from his new investors. In an effort to keep the scheme going Mr. Madoff was on a constant quest to gain new investors. Although Mr. Madoff’s legitimate business was not based off of fraud, according to the reading, there is evidence that he occasionally injected funds from his illegal business into his legal one during times of low revenues (Ferrel, Fraedrich, Ferrell. pg. 417). Additionally, Mr. Madoff was able to convince others that his company was much more lucrative than it actually was by controlling the stream of cash flow. Madoff Due to Mr. Madoffs’ greed many people and organizations (both for profit and non-profit) lost millions of dollars. Due to these loses, unfortunately some lost everything and others took their own lives, including one of his sons, Mark. I feel this fraud could have continued for many years and that the main reason this scheme was discovered was due to the economy doing so poorly at one point and time, the investors not necessarily wanted but needed to get
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