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Madoff Scandal

In: Business and Management

Submitted By brianmell
Words 1807
Pages 8
The Madoff Scandal: 50 billion questions and few answers

Table of Contents
Abstract …………………………………………………………………………………3
Description of Events …………………………………………………………………..4
Analysis of Scenario ……………………………………………………………………4
Questions about Madoff ………………………………………………………………..5
Solutions and Alternatives ……………………………………………………………..7
Conclusion ……………………………………………………………………………...8
References ………………………………………………………………………………10

Abstract
Bernie Madoff ran the biggest in the history of the world. The details surrounding the case and the events that were kept secret are the stuff in movies. With all of the regulations, rules, laws, checks and balances the Madoff scam inflated to massive proportions before popping. The scheme as complicated as it was didn’t fool everyone. In fact, there was well documented evidence released to the government years before the fraud was charged that this was indeed a fraud of massive size. The inability of government to uncover the fraud that was delivered to them brings into question the effectiveness of regulations and laws.

Description of events

Bernie Madoff ran the world’s largest Ponzi scheme. In 2008, the biggest investment fraud in history was revealed and over $50 billion dollars had vanished once all the losses were tallied (Anson, 2009, p. 294). High net-worth investors, movie stars, pension funds, university endowments and others had fallen victim to his swindle. The most fascinating factor of the whole situation is that an astute portfolio manager by the name of Harry Markopoulos, of Rampart Investment Management; among others, warned the government for more than a decade that they believed this was all a giant fraud (Rhee, 2009, p. 366). Madoff fooled them all. Regulators failed in their investigations. Questions still baffle those who lost their life savings. Were the regulators intimidated by a powerful and well

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