Bernie Madoff Essay

967 Words4 Pages
In the case of Bernie Madoff, there were several key facts and critical issues. Mr. Madoff stock fraud was one of the largest in history. I remember seeing this fraud situation on television. After Madoff graduated, he started working with his father in-law accounting office. Eventually he opened his own investment firm. He made his money between the offer price and sales price stock. Bernie became more successful and moved from Wall Street to Third Avenue, into the Lipstick Building. Madoff wife and sons worked at the investment company; however, one of Madoff sons removed his money from the firm years early. There were several companies that invested millions and billions in Madoffs firm. Some of the companies were: Tremont Group…show more content…
This statement included details on equity trades. I believe the statements wooed some of the most intelligent and wealthiest clients. The statements may have seem legitimate in their eye sight. Another element that wooed the clients, were some of the other wealthiest companies that invested in this firm as well, assuming their money would be safe. When they requested withdrawals, the money came quickly. After looking at the video regarding Madoff, Avellino & Bienes knew something was wrong, especially when they inquired about registering. The SEC examiner missed several red flags during the investigation of Madoff's firm. The fraud began as early as the 1990’s. This fraud should have been caught during the 90’s. Some of the companies that were involved in this horrible crime are suing SEC. SEC should have dug deeper to uncover the fraud. This could have prevented other companies from investing their money into Madoff’s firm. I don’t understand why repeated investigations and examinations by the SEC, did not find fraud. Madoff had more than 8,000 customers. To protect their assets, many who have received payout funds from Madoff are transferring the money to irrevocable trusts, homes, annuities, or life insurance policies to protect them from seizure (Kim, 2009). Madoff was a thief that was only concerned about
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