What Is Bernard Madoff's Fraud
Bernard Madoff was a former chairman of NASDAQ stock exchange. He started his investment advisory firm on his own. He has be guilty for the defrauding of the investors of amount $50 billion which he was running the biggest Ponzi scheme for around two decades. In 2008 December when there were economic disturbances and meltdown in the United States Madoff couldn't carry his functions and satisfy his Investors requests of cash. He decided to come clean and accept the fraud he has committed. The Wall Street has collapsed due to the Ponzi scheme as it was the massive investment fraud which has affected many people including the high profile investors. And also the fraud scam has left more than 12,000 investors and many faking investment returns over the years. Madoff has taken in client assets and transferred it to his personal accounts. He mailed …show more content…
While some of the claims say that the SEC missed the risk because of under staffing. Even then the counter opinion was clear management rules and searching for clear answers with timely follow up could have helped in knowing this fraud before it was out of hands.
The investigation internal report of SEC stated that the agency has missed several opportunities to discover Madoff’s criminal actions. More over claims from external sources has states that SEC is not sufficiently risk focused and it has repeated incompetence and holds SEC liable. The conclusion marks that the agency had failed to open up the warnings given about the fraudulent activities said Jacob H. Zamansky a criminal defense lawyer. We can clearly say that Madoff’s cleverness had led him to fleece many investors out of billions of dollars for many decades and the fact that the SEC agency never took the required steps but just the basic measures to check if Madoff was performing a Ponzi