Bernie Madoff the Ponzi Schemer

Bernie Madoff and his Ponzi Schemes

Bernie Madoff was born in April 29 in the year 1938 in Queens, New York. He was a great American stock broker, businessman, financier and advisor for investments. Bernie Madoff was a former non executive chairman for NASDAQ stock market. He took his graduation from Far Rock Away high school in the year 1956. Bernie Madoff took his Bachelor of Arts degree in political science in Hofstra University in the year 1960. He founded his own firm “Bernard L. Madoff Investment Securities LLC” in the ear 1960 and continued to work as a chair person of the firm until he got arrested in 2008 December 11.

Role in Fraud
Bernie Madoff was operator of Ponzi schemes of US which had a highest financial fraud ever in the American history. Ponzi schemes used to assist the investors for business by giving them returns by their paid money itself in different installments by doubling so that they can enhance their business. In March 2009 Bernie Madoff admitted that he was involved in this act which made thousands of investors to loose their property and surrendered in front of the federals. Bernie Madoff has admitted that he had began the Ponzi schemes in the year 1990 but federals believe that it has been started earlier in the year 1970 and they could not able to get the proper estimation of wealth which has undergone in this fraud. The amount of money missing in this fraud is around $65 billion which are purely from the huge amount of investors.

Bernie Madoff had two back officers who used to work according to what he says. SEC (Securities and Exchange Commission) has named them as Joann Crupi and Annette Bongiorno who were included directly in this fraud. These two people used to create completely false trading report for the investors who are determined by Bernie Madoff. Once Bernie Madoff finds customer returns, Bongiorno had a computer program designed such that the trading details will be back dated so that they get huge amount of profit. They used to keep that amount in an extra account which they used for returning the investor’s money. Investors have reported that when they invest an amount they used to get returned only half of that since the date was changed illegally in the back office. This has made a huge loss for the investors like Jewish Federations and hospital and many organizations of America. Lappian Foundation was made to shut because of huge loss after investing with Bernie Madoff. This shows how the investors were cheated in Ponzi scheme by Bernie Madoff.

Consequences
They believe that recovering the complete money which has been under fraud is very difficult and Bernie Madoff was sentenced to 150 years imprisonment in the year 2009, which is the maximum allowed for a person. Bernie Madoff’s lawyer asked for 7 years of imprisonment in front of the court since Bernie Madoff was old and could not have such a long term. But this did not work and sent to jail till death.

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