I chose the scandals of Bernard Madoff. Bernie Madoff has committed one of the largest financial fraud, Ponzi scheme, in history and 'made a loss of nearly $65 billion. Bernard Madoff is an American fraudster and a former stockbroker, investment advisor, and financier. Bernie Madoff was a well-known and a well-liked man on Wall Street. Madoff had a perfect reputation, not only in the investment market, but socially. He ran an elaborate Ponzi scheme at his investment company, Bernard Madoff Investment Securities. Madoff was born on April 29, 1938, in Queens, New York, to parents Ralph and Sylvia Madoff. Ralph, the child of Polish immigrants, worked for many years as a plumber. His wife, Sylvia, was a housewife and the daughter of Romanian and Austrian immigrants. Ralph and
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Madoff was not actually a client of any of the large auditing firms. His firm used the small New City, New York accounting firm which reportedly had offices in a strip mall and had only three employees, including a secretary, an accountant. All the small accounting firms he used they were only checking the statements that Madoff himself produced or handled which I think for a big investment company Madoff 's accounting firm should have been a big red flag. Auditors did not look deeper in Burnie’s investment company. Madoff continually paid high returns to existing clients with the funds injected by new investors without engaging in any form of legitimate investment activity and to keep suspicions low in the investors, Madoff had the staffers create fictitious quarterly statements to mail out. And what I have read the investors were pleased with the returns that the statements reported, so no suspicions ever arose.
Madoff was not actually a client of any of the large auditing firms. His firm used the small New City, New York accounting firm which reportedly had offices in a strip mall and had only three employees, including a secretary, an accountant. All the small accounting firms he used they were only checking the statements that Madoff himself produced or handled which I think for a big investment company Madoff 's accounting firm should have been a big red flag. Auditors did not look deeper in Burnie’s investment company. Madoff continually paid high returns to existing clients with the funds injected by new investors without engaging in any form of legitimate investment activity and to keep suspicions low in the investors, Madoff had the staffers create fictitious quarterly statements to mail out. And what I have read the investors were pleased with the returns that the statements reported, so no suspicions ever arose.