Bernie Madoff Research Paper

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The scandal I chose was the Bernie Madoff scandal. Bernie Madoff was born in 1938 in Queens, New York. Bernie Madoff started his investing company in 1960 with just $5,000 (“Bernie Madoff Fast Facts”). When his wife, Ruth, and him got married, they were so poor. He saved that $5,000 from being a lifeguard. Bernie met his wife at school. He graduated with a bachelor degree in political science and Ruth went into finance. Madoff was screwing people over with their investments since 1970. The question is how he got away with it for so long? He was performing a Ponzi scheme. A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. There are some red flags when it comes to the Ponzi schemes. Some red flags include high returns with little or no risk, overly consistent returns, unregistered investments, secretive strategies, and difficulty receiving payments (“Ponzi Scheme”). Bernie made a name for himself with the development of NASDAQ. He then…show more content…
The first one is only some of the thousands of victims have gotten all of their money back. Only about $9.5 billion dollars have been recovered from the $20 billion in stolen assets (Smith). The second thing is no one really knows when Bernie started his scheme. In 1975, Madoff hired a account manager, Frank DiPascali, Jr, who stated that the scheme was going on for as long as he could remember. The third fact that many people do not know is that he only stole $20 billion. People think he stole almost $65 billion because sometimes he scheme has been referred to as the $65 billion crime. Bernie just told people that their returns were $65 billion but in reality, the returns were only $20 billion. The fourth fact is that lawyers have gotten about $800 million just for cleaning up all the mess Madoff made. The last fact about Bernie Madoff is that he said, “prison life is not that bad”

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