Bernie Madoff was a well-respected, intelligent, and charitable individual. Having served on a government regulatory board and as Chairman of the NASDAQ from 1990-93, further entrusted individuals to Madoff (Ferrell, Fraedrich, & Ferrell, 2013). Holding increased titles within the community, Bernie Madoff was respected not only for his business savy, but for his philanthropy.
The investment firm operated in an “invitation only” approach that added to the air of a high-class, elitist firm, yet being wealthy did not guarantee membership (Gregoriou & Lhabitant, 2009). When only a few can be part of the club, many strive to obtain a membership. Part of the attraction for wealthy investors was the conservative nature, yet steady return. Madoff claimed consistent returns occurred by trading a very specific portfolio of stocks using a split-strike strategy that delivered 10-12% yearly returns (Gregoriou & Lhabitant, 2009).
The SEC received numerous reports regarding Madoff Industries in the years prior to his confession. Harry Marcopolos investigated for ten years, prompting the SEC to pursue his findings and after a two year invesigation they cleared Madoff (Frontline, 2009). Unfortunately, the SEC did not take the reports as serious as they should. According to Madoff, the SEC is underequipped to police the market …show more content…
C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases [9th edition]. Mason, OH: Cengage Learning. Retrieved from https://www.betheluniversityonline.net/cps
Frontline. (2009). The Madoff Affair. Retrieved April 20, 2017, from http://www.pbs.org/wgbh/frontline/film/madoff/
Gregoriou, G.N., & Lhabitant, F. (2009). Madoff: A flock of red flags. Journal Of Wealth Management, 12(1), 89-97.
Patel, S. S. (2013). Madoff: Don't let wall street scam you, like I did. Retrieved April 20, 2017, from
The investment firm operated in an “invitation only” approach that added to the air of a high-class, elitist firm, yet being wealthy did not guarantee membership (Gregoriou & Lhabitant, 2009). When only a few can be part of the club, many strive to obtain a membership. Part of the attraction for wealthy investors was the conservative nature, yet steady return. Madoff claimed consistent returns occurred by trading a very specific portfolio of stocks using a split-strike strategy that delivered 10-12% yearly returns (Gregoriou & Lhabitant, 2009).
The SEC received numerous reports regarding Madoff Industries in the years prior to his confession. Harry Marcopolos investigated for ten years, prompting the SEC to pursue his findings and after a two year invesigation they cleared Madoff (Frontline, 2009). Unfortunately, the SEC did not take the reports as serious as they should. According to Madoff, the SEC is underequipped to police the market …show more content…
C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases [9th edition]. Mason, OH: Cengage Learning. Retrieved from https://www.betheluniversityonline.net/cps
Frontline. (2009). The Madoff Affair. Retrieved April 20, 2017, from http://www.pbs.org/wgbh/frontline/film/madoff/
Gregoriou, G.N., & Lhabitant, F. (2009). Madoff: A flock of red flags. Journal Of Wealth Management, 12(1), 89-97.
Patel, S. S. (2013). Madoff: Don't let wall street scam you, like I did. Retrieved April 20, 2017, from