Austin Sweeting
Mrs. Jones
Sociology 8:00
21 March 2016
Bernie Madoff's $50 Billion Ponzi Scheme:
White Collar Crime
After overlooking several different types of crimes I decided to look into the damaging effects of what white collar crimes can cause. Thereafter I then decided to choose one of the most infamous white collar crimes “Bernie Madoff’. The man who almost got away with billions of dollars of innocent investors. We will dive into the shocking story of Bernie Madoff the man who embezzled billions. The shocking story that prominent investment manager Bernard Madoff’s hedge fund, was a huge scam which forced to liquidate holdings and increase stock prices. The arrest of the 70-year-old Madoff, widely considered to have the perfect …show more content…
Everyone across America now wanted to know how Madoff could have pulled off this Ponzi scheme. Ascot’s, which was the company’s name, had monthly reports showing many transactions in and out of the market every day. Madoff was supposed to have some “black box” system that signaled when to buy and when to sell. He was one of the most active traders in the marketplace, and his annual returns in these short-term trades were mainly ordinary income, which is why it made Ascot attractive mostly to foundations, hospitals and religious groups. If it so happened that $50 billion was lost, as Madoff claims, it would be the largest fraud in history. Madoff was one of of the first jailed investors of the 2008 market meltdown.
Some may say that this was a once in a lifetime event, while other’s gasp in astonishment on how this could have ever gone under the radar. Either way 50 billion dollars’ worth of money lost isn’t easy to just overlook. Madoff was a smart man who out witted thousands and undermined the stock market. White collar crimes effect millions and not just the company or customers. The effect’s cause stocks to increase and unbalance a delicate system withdraws and
Mrs. Jones
Sociology 8:00
21 March 2016
Bernie Madoff's $50 Billion Ponzi Scheme:
White Collar Crime
After overlooking several different types of crimes I decided to look into the damaging effects of what white collar crimes can cause. Thereafter I then decided to choose one of the most infamous white collar crimes “Bernie Madoff’. The man who almost got away with billions of dollars of innocent investors. We will dive into the shocking story of Bernie Madoff the man who embezzled billions. The shocking story that prominent investment manager Bernard Madoff’s hedge fund, was a huge scam which forced to liquidate holdings and increase stock prices. The arrest of the 70-year-old Madoff, widely considered to have the perfect …show more content…
Everyone across America now wanted to know how Madoff could have pulled off this Ponzi scheme. Ascot’s, which was the company’s name, had monthly reports showing many transactions in and out of the market every day. Madoff was supposed to have some “black box” system that signaled when to buy and when to sell. He was one of the most active traders in the marketplace, and his annual returns in these short-term trades were mainly ordinary income, which is why it made Ascot attractive mostly to foundations, hospitals and religious groups. If it so happened that $50 billion was lost, as Madoff claims, it would be the largest fraud in history. Madoff was one of of the first jailed investors of the 2008 market meltdown.
Some may say that this was a once in a lifetime event, while other’s gasp in astonishment on how this could have ever gone under the radar. Either way 50 billion dollars’ worth of money lost isn’t easy to just overlook. Madoff was a smart man who out witted thousands and undermined the stock market. White collar crimes effect millions and not just the company or customers. The effect’s cause stocks to increase and unbalance a delicate system withdraws and