Madoff case
I have learned a lot from the several real-life ethical issues from the exercises at the end of chapters this semester. From several exercises, it is evident that ethical behavior is advantageous in several ways. Among the advantages of ensuring good ethical behavior include the building of customer loyalty, enhancement of a company’s reputation, retain good employees, and a positive work environment. Furthermore, there is also further information on the cases, including the Madoff case. This article will focus on giving additional details on the Madoff case.
During the discussion on the Ponzi scheme, we learned about Bernie Madoff, who defrauded several investors billions of dollars. The magnitude of Madoff’s case almost contributed to the Ponzi scheme being changed to Madoff Scheme. Madoff was a consultant to the Securities and Exchange (SEC) on investment regulation. After the exposure of Madoff’s scheme, SEC was in the spotlight with critics questioning SEC’s involvement in the scheme. SEC is somehow responsible since it was responsible for overseeing registered broker-dealers’ clearing agencies, transfer agents, investment companies, and advisers. Therefore, it could have noticed the scheme earlier before more investors were defrauded and more money lost.
Madoff was determined to achieve success because his father had lost everything after building a big business. In his quest for success, Madoff achieved great success when he and Peter built electronic trading capabilities. Madoff made approximately $100 million by the late 1980s. Despite the huge successes, greed prevailed, leading him to carry out the Ponzi scheme. However, Madoff stated that he was tricked into carrying out the scheme and from where his greed made him continue with the scheme. Among the most profitable individuals from the scheme were Carl Shapiro, Jeffry Picower, Stanley Chais, and Norm Levy. In 2009, Madoff admitted to committing fraud and was sentenced to 150 years of incarceration and ordered to pay $170 billion.