Business Management Essay
Business Management/Human Resources
The Bernie Madoff’s Scandal
The Bernie Madoff scandal is widely recognized as an example of an unethical business research, Bernie Madoff managed to build a multibillion-dollar investment firm based on skewed research and false financial data. The wealth management eluded the SEC and other authorities for decades before finally being shut down in 2008. Unethical business research played a large role in the company’s ability to hide their criminal conduct. However, the actions of the business were uncovered and federal charges were filed against Madoff. The incident has provided one of the best examples of how additional …show more content…
Bernie Madoff took sole responsibility for the crimes and pled guilty to the total of 11 federal felonies. Although other people are suspected to be involved, he was sentenced to a 150 years prison sentence. (Henriques 2009). The wealth management company is now defunct and most of the fake returns paid to early investors are unrecoverable by those who lost their entire investment. The scam was one of the most widely covered financial frauds in America history.
The scam allows people to be aware of the widespread impact that white-collar crimes can create. Madoff is now a household name; the actions of a single man have negatively affected tens and thousands of people from all over the world. In the aftermath of the scandal, the Securities and Exchange Commission admitted to several shortcomings that allowed the scheme to go on for so long. One of the most important aspect SEC listed was a failure to follow up on inquiries related to unsuspected fraud ( Hilzenrath 2011).
In conclusion, if the financial data were accurately reported, this scam would have been avoided. On a positive, the scandal has provided a good example of an opportunity to prevent fraud in the future.