Essay about The Ponzi Scheme Of The Madoff Brothers

871 Words Oct 30th, 2015 4 Pages
Mark Madoff was put in a very difficult position on whether to turn his father, Bernie Madoff, in for his Ponzi scheme immediately or give his father a week delay as he requested. If Mark would have not immediately gone to authorities, he risked looking guilty for involvement and risked the charges associated with involvement, in addition to possibly facing charges for withholding information on his father’s illegal activity. If Mark chose to wait it out, he would be giving Bernie not only a chance to “fit it” as much as possible, but at the end of the week if Bernie did not turn himself in, Mark may have felt more “free” in his decision to turn his father in. However, by waiting the Madoff brothers risked Bernie getting himself into further illegal activity. Ultimately, the Madoff brothers did the “right” thing by going directly to the authorities with the information of their father’s Ponzi scheme. Through this action the brothers also reduced their personal risks of being charged with involvement of being an accessory to Bernie’s crimes and charges of guilty by association. Now, as most Ponzi schemes are, Bernie’s scheme was not by any means simple. Rather than investing the money as he claimed he did, Bernie deposited the money he obtained from investors into his personal bank account. From here, he paid his investors with the income he gained from new clients. Bernie grew his business illegally by exceeding the number of investors allowed without a license as laid out…

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