Bernie Madoff's Life and Career
As the popular saying goes, if something is too good to be true then it probably is. This perfectly sums up the life and career of Bernie Madoff. At a point, he was one of the most sought-after investment managers in America. The cookie however crumbled in 2008 when it was discovered that he had no genuine investment plan but rather an elaborate Ponzi scheme. It left thousands of his clients devastated with the loss estimated at a whopping $65 billion.
Bernard Lawrence Madoff was born on the 29th of April 1938 in New York City. He hailed from a Jewish family; his father’s name was Ralph while his mother’s name was Sylvia. He also had a brother named Peter and a sister named Sondra. Bernie Madoff attended the Far Rockaway High School and graduated in 1956. For his college education, he studied political science at Hofstra University and graduated in 1960. Upon graduation, Madoff briefly studied to be a lawyer but eventually to left set up his own investment firm. The firm was known as Bernard L Madoff Investment Securities LLC and he reportedly used the money he saved up from his lifeguard job to start the firm. He commenced trading in low priced stocks and his clientele steadily grew thanks to his father-in- law’s contacts. His business was also boosted by an ICT innovation and he helped to found the NASDAQ. This is an electronic-based stock exchange in New York. He would serve as its director for three years. Bernie Madoff attracted clients by promising handsome returns on investment. He then used the money invested by later clients to pay the earlier ones rather than making genuine investments. He soon became a well-known investment manager and his client base extended to include people such as famous Hollywood director, Steven Spielberg.
One thing that has intrigued many is how Bernie Madoff went unnoticed for so long without any official intervention. In the year 1999, a finance expert named Harry Markopolos made a report to the Securities and Exchange Commission. He reported that it was not possible for Madoff to be making the type of his returns he was doing. This report was however not taken serious even though he continued making the complaint in 2000, 2001, 2005 and 2007. Things however came to a head in 2008. Following the global financial downturn of that year, Bernie Madoff found that he could no longer meet obligations to clients. He was supposed to pay out $7 billion but found that he only had $234 million in his business accounts. He confessed his situation to his adviser as well as his family. His sons subsequently reported him to federal authorities. This was in December 2008 and he was later arrested. It is actually hard to pinpoint when Madoff’s company turned into a full blown Ponzi scheme. Madoff himself said that it started in 1991 while investigations have revealed that it probably started in the 80s or the 70s. All in all, his clients lost $65 billion with 17.3 billion being the amount actually invested and not paid back. Till date, at least 11 billion has been recovered and paid back to his victims by government.
Bernie Madoff was arrested on the 11th of December 2008. He was eventually charged with 11 felonies including money laundering, perjury, false fillings and Fraud. He pleaded guilty on the 12th of March 2009. He was sentenced to 150 years in prison on the 29th of June 2009. Given the fact that he is now in his 70s, it is most likely that he will spend the remainder of his days in prison. Since being sentenced, Bernie Madoff is now serving his time at a federal prison in Butner, North Carolina. There have been reports of altercations with fellow inmates. In December 2009, he was reportedly taken to a hospital outside the prison due to serious injuries that he sustained in a fight. He however said that the report was false and that he was hospitalised for hypertension. So, Madoff is still very much alive. He has however revealed that he is suffering from a stage 4 kidney disease in addition to hypertension.
Bernie Madoff is married to a lady named Ruth. They met while in high school and got married in November 1959. Ruth actually co-founded her husband’s company and worked as a bookkeeper in his company. She denied knowing anything about his Ponzi scheme. Following the legal case against her husband, she surrendered $85 million to the government and was allowed to keep $2.5 million. Ruth Madoff has disclosed that she and her husband attempted a joint suicide when the Ponzi scheme was uncovered in 2008. The Madoffs had two children. They are sons named Mark and Andrew. They both worked for their father and were also involved in philanthropic activities. They are now late. Mark committed suicide in December 2012. He was 46 at the time. Andrew died of cancer in September 2014. He was 48 years old at the time of his demise.
Bernie Madoff pulled off one of the largest Ponzi schemes in history to date. Madoff figured out a way to get clients to invest money by providing false hopes of a profitable return on investment. This money then would cycle back through and he would use the money to pay existing clients when they wanted to take cash out but claimed to use a legitimate strategy to attract new clients. He also had thought it through enough to move large...
Abstract Bernie Madoff, who began his brokerage firm in 1960, was the mastermind who executed a historical the world’s largest and longest-lasting Ponzi scheme fraud of $50 billion through his investment company, Bernard L Madoff Investment Securities LLC, shocked the global economy. As per his modality of fraud, Madoff used investments to pay off his first investors, creating the appearance of a return and prompting more people to invest with him. In reality, the company had no income and no...
Would anyone assume that a young man who grew up from humble beginnings in a small Jewish middle-class family be responsible for the largest Ponzi schemes in American history? A young Hofstra graduate with a bachelor’s degree in Political Science and hopes and aspirations to work on Wall Street. Bernie Lawrence Madoff was born on April 29, 1938, in Queens, New York. Madoff’s Family originated from Poland and was heavily affiliated with the Jewish religion and community. Madoff was never...
Introduction There are many in this world who are gifted, who excel beyond the rest. They are leaders, visionaries and pioneers. A mystic all-knowing confidence surrounds their image. Bernie Madoff was one of these people. He was one of the best traders in wall street, he was wall street. His consistent investment returns made him one of the best fund managers in the world. One couldn’t just invest with Madoff, one had to know someone, be vouched for, earn the...
The Bernie Madoff Ponzi scheme was the biggest of all time, so much so that he earned himself 150 years in prison. The Madoff Ponzi scheme was so big it captured the attention of the entire world. It rivaled OJ Simpson’s case in attention which is no small feat. Bernie Madoff’s last words before he was sent off to jail were that he had left a “legacy of shame.” Honestly, I think a better description would be a legacy of...
One man about escaped from one of the biggest bank schemes in the world totaling a cash amount of $13.375 billion dollars (SIPA). The name, Bernie Madoff, was one of the most talked about person during 2008 to 2009. He was arrested in late 2008 just on, “a criminal complaint alleging one count of securities fraud” (The United States Department of Justice). Although this at first seemed like it would be tax evasion or stealing a sum of money from...
The last of the red flags for Ponzi schemes are paperwork errors and trouble receiving your payments. If paperwork regarding your investment is filled with errors or misstatements it can mean that someone is trying to intentionally mislead you. If one is having trouble receiving his money from the investment manager, it could throw up a caution sign. This might occur when the Ponzi scheme is starting to fail. Since Ponzi schemes pay their past investors with future investments, this...
Abstract An individual sees approximately 3000 ads per day and the number is not likely to reduce anytime soon. Hence we explore the various effects of advertising strategies employed on the individual. It addresses the various forms of advertisements that an individual is exposed to in their day-to-day lives as well as the effects of the various persuasive psychological techniques on the psyche of the individual. These include the use of color, heuristics, emotional conditioning, and personalization in advertisements. It...
Executive summary This study will focus on investigating and identifying the relationship between strategies and property tax collection in Tanzania. Specifically, it aims at examining the strategies for the improvement of property tax collection in government, identifying the major challenges confronting property tax collection, and suggests possible measures to overcome those challenges to increase revenue collection from the property owners. The study intends to involve 120 respondents from 4 wards of Ngaramtoni Township Authority at TRA-Arumeru in Arusha, Tanzania. The...
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