Madoff Ponzi : The Ponzi Scheme Essay

717 Words Feb 6th, 2015 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 scheme was created. Where Bernard L. Madoff, also known as “Bernie” tricked investors up to $64.8 billion in investments. Investors were getting paid returns with their own money or with other investors’ money, not with profits gain from the investment firm. The Bernard L. Madoff Investments Securities, LLC (BLMIS) located in Manhattan NY, was known by giving in returns double digits, even when stocks on Wall Street were down to one digit. The day before his arrest, , Bernie seemed stressed because there was a huge Financial Collapse and investors were pulling funds out that reached $7 billion. Bernie told his two sons to come visit him after work to discuss whether or not employees were going to get paid early bonuses. Andrew Madoff…

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