The Madoff Ponzi Scheme

717 Words 3 Pages
The Madoff Ponzi scheme took place on September 2008, which was one of the largest Ponzi scheme ever seen in U.S. History. The Madoff Ponzi scheme impacted, investors, families, employees, and as known the Madoff family fell apart. While the Madoff Ponzi scheme was not yet discovered, it all goes back from the beginning when Bernie founded the company with $5000.00 in 1960 from his lifeguard job back in the day. Bernie commented that he did not begin his company with such scheme. In fact, the Bernard L. Madoff Investments Securities, LLC was started with good investors and new money. After a couple of years, the firm wasn’t getting new money as it used to and returns still had to be paid out to large investors, that’s when the Madoff Ponzi …show more content…
Madoff 150 years in prison, also with his accountant, David Friehling, and Frank DiPascalli. Bernie and 15 individuals had charges including, security fraud, mail fraud, and wire fraud. DiPascalli was sentenced over 100 years in prison, as well as the other individuals who pleaded guilty. After three months of trial, Bernie pleaded guilty. “Irving Picard, the court-appointed trustee liquidating the Madoff estate in federal bankruptcy court, is suing to “claw back” those paper profits so he can redistribute them to victims who lost actual principal by investing directly with Mr. Madoff”. (New York Times) Mark Madoff committed suicide on December 11, 2010 on the two year anniversary of his father’s arrest. Andrew Madoff, passed away on September 2014 from cell lymphoma and Bernie’s wife Ruth left him, while his trial was still in process. To today’s date, Mr. Madoff is being held in prison located in North Carolina.
Picard mentioned that he believes the Madoffs brothers were fully aware of his father’s action, they both had access to information and created phony accounts and received payments disguised as loans. To this day, there is no evidence that reflects credibility to such

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