Bernard Madoff case study
Not what you're looking for?
1. In a narrative format, discuss the key facts and critical issues presented in the case.
2. Do you think Bernard Madoff engaged in creating a Ponzi scheme because of greed or did he employ it as a short term strategy and just caught up in a process that he could not reverse?
3. What were the elements that led to him so successfully wooing some of the wealthiest and most intelligent clients? Why do you think the SEC was unable to uncover his fraud?
4. If you were in the position to recommend an investment advisor, how would you make sure that you did not become the victim of a Ponzi scheme or other financial fraud?
Purchase this Solution
Solution Summary
Your discussion is 523 words, indicating that Maddoff was driven by greed, set up client as special people to create allure, pushed back on inquiries using intimidation and never intended to make this right.
Solution Preview
1.
Maddoff founded one of the first brokerage firms to use the computer to reduce the cost of trading securities and one of the founders of the NASDAQ. His firm grew dramatically during to highly consistent earnings, regardless of market movements. His career achievements put him in high regard. Maddoff intimidated the SEC during their review of complaints that his returns are not realistic or even possible. Maddoff also did not accept clients that were probing (asked details about methods) or required online access to see trades in real time.
In 2008, Maddoff confessed to his son that he results were fraudulent. News of the Ponzi scheme outraged the public and called independent audits into question. The auditor, Friehling, was a single-auditor firm, clearly not staffed enough to audit a ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.