Madoff Securities Fraud Case

1363 Words 6 Pages
Madoff Securities

Madoff securities, is a company created by Bernard l. Madoff Investment Securities LLC was founded in the year 1960 by Bernard Lawrence Madoff, who happened to be also be senior executive of the company. Bernard Lawrence started the company using accumulated funds of $ 5,000 from his business that involved the installation of sprinkler systems for wealthy New Yorkers. In his five years as executive, the company accumulated a fortune estimated at more than one billion dollars. Madoff securities performed well with an annual profit of tens of millions of dollars. The company’s performance was considered spectacular and consistent. In 2001, Barron’s reported that some of the company’s largest investment funds never experienced a losing year even though there was a significant market decline. As the rest of the world watched the collapse of the in 2008, Madoff securities seemed un-phased by the event. The company was very meticulous in its dealings and in the strategies used to propel the company above all others. The regulatory body at the time was also not able to determine the illegal schemes undertaken by the company until Bernie Madoff
…show more content…
It’s plain as day that the SEC did not do much in exposing the company; however, had it gotten media attention. All the commotion could have motivated the SEC to determine if the allegations against Madoff securities were credible. Who knows, maybe all attention on Madoff securities would have also alerted the Big Four requested audit firms to get involved and possibly had provided input on the issue. By exposing the fact that Madoff’s audit form was actual a one man shop by the name of Freihling, the American Institute of Certified Public Accountants (AICPA) would have gotten their hands on the case and declare the audits to be worthless since they were done by unauthorized

Related Documents