Bernie Madoff Case Summary

His mother was a housewife and his father was a plumber. Like most families during this time era, they were struggling after the Great Depression. The Madoffs became so fraught over money issues that they began to get into finances. Later, in the 60s his mother, Sylvia Madoff, registered a broker dealer when she opened an office referred to as Gibraltar Securities. Shortly afterwards, the United States Securities and Exchange Commission (SEC) forced closure due to unreported financial conditions. During this time, Bernie Madoff showed little to no interest in finances. As a typical student in high school, Bernie focused on his classes, relationships, and most importantly, the swim team. As a young man, he got a job as a lifeguard on Long Island (Bernard Madoff Biography, 2018). Through this job he was able to save money, which was later used to construct his first

BMIS engaged in three different operations, namely investment advisor services, market making services and proprietary trading. Bernard Madoff conducts certain investment advisory business for clients that are separate from the BMIS proprietary trading and market making activities. Bernard Madoff has been conducting a Ponzi-scheme through the investment advisor services of BMIS, and through their scheme have defrauded investors out of monies estimated to exceed $50 billion. When a senior employee was told by Madoff that there had been a request from clients for approximately $7 billion in redemption and he was struggling to obtain the liquidity necessary to meet those obligations. Madoff also told another employee on December 9, 2008 that he wanted to pay bonuses to employees of the firm. This was earlier than bonuses were paid, and also with another employee admitting that his investment advisory business was a fraud that it’s all just one big lie and that it was basically giant Ponzi scheme. Bernard Madoff also informed employees that he planned to surrender to the authorities but before he does that he had approximately $200-300 million left and planned to use that money to make payments to certain selected family and friends. Madoff would make people believe that BMIS was a legitimate enterprise engaged in the lawful brokerage and sale of investment securities, when BMI

Bernard Madoff parents was not successful with the trade, his mother was registered as a broker-dealer in the 1960s making their home the office of their company called Gibraltar

One of the biggest scam in the entire United States history was noticed by Harry Markpolo and the criminal was Bernie Madoff who was the reason for $50 billion dollar financial fraud. It took very less time to find the fraud for the investigator Markpolo and few hours to demonstrate the procedure scientifically. As being responsible Markpolo reported to SEC (Securities Exchange Commission) in the year 2000 as it is the initial one. After that Markpolo again reported to SEC in between the years of 2000 to 2008 for five times but the higher authorities are repeatedly ignored about the case. Markpolo was initially in May 2000 found that 3 to 7 billion dollars are looted in this Ponzi scam it was increased to 10 to 12 billion dollar

Madoff graduated from Hofstra in 1960 receiving his bachelor’s degree in political science. With the help from his father in law, a retired CPA, Madoff and his wife started their investments firm, Bernard L. Madoff Investment Securities, LLC. He took $5000 from his personal savings and borrowed an additional $50,000 from his in laws who attracted investors such as Steven Spielberg and Kevin Bacon. His business flourished during the 1980’s with annual returns of 10 percent or more and handling a percentage of trading volume on the New York Stock Exchange. It grew into one of the largest brokerage firms on Wall Street. During this period Madoff’s growing business had gone through some illegal trading’s on the side. More growth and illegalities had his bank accounts flowing with

Bernie Madoff ran what is by extreme measures the largest Ponzi scheme in world history. His investment company was multinational and at its height handled more than five percent of the total trading volume on the New York Stock Exchange. Ponzi schemes are operations in which the operator pays investor returns from new capital paid to the operator by new investors rather than from profit earned. Ponzi schemes often begin as legitimate investment businesses until the legitimate investment business fails. Much is still debated as to when Bernie Madoffs operation become a Ponzi scheme. Bernie Madoffs operation was dependent on feeder funds to bring in additional money to help the scheme along. Going back to the earliest days of the Madoff fund two

Some investors wondered, did the SEC have any knowledge of the fraud happening at Madoff Securities? SEC investigated Madoff Securities on at least 8 occasions prior to 2008. However, each investigation resulted in no wrong-doing. Most of the complaints were filed by Harry Markopolos. Harry Markopolos is a financial analyst and fraud investigator from Boston. In 2005, Harry Markopolos, sent the SEC a lengthy complaint that clearly specified and identified the 29 red flags suggesting fraud. Unfortunately, the SEC did not act on any of Mr. Markopolos accurate finds. Among these red flags was Madoff’s refusal to provide his clients with online access to their accounts and would instead mail monthly account statement to each client. Bernie would

Timeline. Retrieved February 21, 2016, from http://www.pbs.org/wgbh/pages/frontline/madoff/cron/ Yang, S. (2014). 5 Years Ago Bernie Madoff Was Sentenced to 150 Years In Prison – Here's How His Scheme Worked. Retrieved February 21, 2016, from

The Securities and Exchange Commission said the trick went into disrepair when the economy floundered and individuals began making a request to trade out their ventures. Actually, just a small amount of Madoff's a great many casualties have become the greater part of their cash back. For instance, Irving Picard, the court-named trustee in the Madoff case, has recouped more than $9.5 billion of the $20 billion in stolen resources. About portion of that - almost $4.9 billion - has been dispersed to Madoff casualties.

Bernie Madoff was arrested and stood trial for his Ponzi Scheme, the most successful ever, and was sentenced to 150 years in prison. The whole ordeal took a toll on his entire family, especially his son, Mark Madoff, who committed suicide due to allegations about his involvement. To date, only half of Bernie's victims have been reimbursed, some losing their entire life

He began his business by investing with his family and friends, people who ultimately trusted him (something only a true sociopath would do). He used his charm and outgoing personality to recruit new investors. Madoff knew what the people wanted – they wanted to get rich fast, so he offered them a steady 1%/month and 10-12%/year. When people began investing in Madoff they would recommend their friends to him. He was known as an ‘exclusive investor’, it was difficult to invest with him, almost as if he was ‘doing them a favor’.

Madoff Securities Fraud / Ponzi scheme was one of the article I read and I thought that it was interesting because he maculated so many peoples including the employees of the company invested their life saving, and he fraudulent stolen over 50 billion dollars before he was caught. Because he was high in power he was allowed to change records submit important document and get funds without having the approval signatures that was needed. Madoff was able to use the mail, wire communication to launder money from the employees benefit funds to different location and no one question his unethical behavior within the company. He gave false information to the (SEC) Securities and Exchange Commission for

All of that money is assumed to be gone”. Others try to pinpoint just how did Mr. Madoff lose all of that money? Most really don’t know and can’t say for sure. According to the Wall Street Journal, Mr. Madoff indicated that he traded stocks and options through European counterparties, instead of his own trading firm,. But the records reveal that investigators don’t believe that to be true. There is no evidence that Mr. Madoff lost or made large sums of money on good or bad trades, or that he traded at all. In some recent cases of spectacular losses, the causes were clear. There were wrong-way bets on oil prices, for instance, or mortgages that turned out to be toxic, but there is no indication that Mr. Madoff made any such bets. Nor are there signs that he simply wasted the money on a lavish life style. While he did enjoy a lifestyle of the rich and famous life, he owned a stock-trading business that could have provided him with enough money to fund it. Many have asked if there is any money left over to repay all of the swindled investors. Since most don 't know if he lost any money or how much he ever had, investigators don 't know what might be leftover, or where it might be. Investigators in the SEC and in the Securities Investor Protection Corp. are looking for the money by trying to follow the money trail. However it is probably safe to say if he was smart enough to outsmart thousands of investors out of their money, he is probably smart

By 2000, Madoff Securities, one of the top traders of US securities, held approximately $300 million in assets. The business occupied three floors of the Lipstick Building, with the investment management division, referred to as the "hedge fund", employing a staff of approximately 24. Madoff ran a branch office in London which employed 28 people, separate from Madoff

The SEC probed Mr. Madoff’s business on numerous occasions for sixteen years. Despite many blatant warning signs, not once was there an investigation that uncovered the fraudulent auditing being performed. Regarding the SEC, Madoff was quoted in a jailhouse interview as saying that “it never entered the SEC’s mind that it was a Ponzi scheme,” and also that he had “too much credibility with them and they dismissed” the idea of a Ponzi scheme.(7)