Mr. Bernard Madoff's Ponzi Scheme Essay

1062 Words 5 Pages
Mr. Madoff performed one of the most significant fraudulent acts in the history of unethical actions. Mr. Bernard Madoff’s Ponzi scam will go down in history as the top scheme in the world. The Ponzi scheme was made famous by Italian criminal Charles Ponzi. Charles Ponzi’s scheme included coupons, Madoff’s scheme dedicated funds presented by big-name investors. Madoff’s Ponzi scheme involved Mr. Madoff taking money from investors and investing it into his bank account instead of actual investments. Mr. Madoff promoted a significant return on these investments which caught the eye of these big name investors. Apparently, these actions are extremely unethical and have changed the lives of many people. Mr. Madoff’s family claims not to know anything …show more content…
Madoff's victims continuously wrote letters to the court to witness what Mr. Madoff has done. However, writing letters is not where they stopped, the victims of Mr. Madoff recruited friends and family to help them win the case or witness against Mr. Madoff (Lewis, 2010). Mr. Madoff stole over 60 billion dollars in investments from these innocent investors. Some of these investors went as far as giving him their entire life savings which would soon be lost in the Ponzi scheme. One investor sadly committed suicide over what Mr. Madoff did to him and his life savings. Mr. Madoff was even involved in overseas investments where he performed the same scheme as he did with investors in the United States. Apparently, it has been said that the state common law made it easier for Madoff to go global with his scheme which allowed Madoff to acquire more money from overseas investors (Rounds, 2009). During Mr. Madoff’s sentencing, truths about the scam began to pour out and shock the world. Two people that we shook the most was Mr. Madoff’s sons. Not only were his two boys appalled that he performed such an unethical act, but they were shocked that their father lied to them about how much assets was truly generated. Mr. Madoff told his sons that the business was worth more than what the SEC said it was worth (Ferrell, Fraedrick, & Ferrell, …show more content…
Madoff’s scheme? Naturally, many things can be done to ensure that the Ponzi scheme does not happen again. Companies are put on strict guidelines by numerous government agencies to ensure that the company is displaying ethical acts. Apparently, it is almost like companies are provided a code of conduct they must follow. Companies had to file certain financial documents promptly to the SEC or else they would face the consequences (Bartov & Konchitchki, 2017). The SEC is the Securities and Exchange Commission which should have noticed what Mr. Madoff was doing. The SEC was one of the few agencies looking into the unethical acts performed by Mr. Madoff. Apparently, these unethical actions performed by Mr. Madoff were no surprise to the SEC because they have been tracking Mr. Madoff for a little over seven years (Ferrell, Fraedrick, & Ferrell, 2015). So, now the question is why did the SEC not intervene as soon as they suspected Madoff and his Ponzi scheme? Apparently, the SEC and other government agencies can perform a better job by investigating instances such as these to ensure they are caught early when billions of dollars are not on the

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