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Who was (were) the individual (s) and company (ies) involved?
Involved in the scam and also the main part of it was indeed Bernard Madoff himself.
Although he said that he had acted alone in the process, it seemed as though the scam was of
such a large magnitude that it was almost impossible that he could have acted alone. Madoff, as
previously mentioned, had taken sums of money from those that chose him to be their investor.
As he started small and only had $5,000 to begin with, he quickly built up his firm and ended up
serving as a chairman for multiple years. The people that he involved ended up being the people
that he genuinely left out to dry. The people he dealt with had large sums of money typically,
such as Steven Spielberg, Kevin Bacon and even the New York Mets owner.
To this day, it is still unknown to the true beginning days of when the scheme began
occurring. Some have speculated that it has been going on since his first days in office on Wall
Street, when he worked for NASDAQ; however, some say that it began when he created a firm
of his own to where it was easier to continue on with his scam. Madoff himself has been quite
contradictory in regards to this information as well. In different interviews he tended to say
different dates, thus leading to an inconclusive date. It has been said in many different places by
numerous people that he had stolen $65 billion from people throughout the days of his scheme. It
was technically only $20 billion dollars as opposed to $65 billion. The amount of money that
was initially invested totaled to $20 billion but with the amount of returns that had been
accumulated on the investment it created a total net worth of $65 billion.
him. These bonus checks would end up totaling several millions of dollars. It wasnt until
Bernard Madoff decided to write out their bonus checks two months early that people within the
firm started to question the decision, demanding to know where this large sum of money was
coming from. He ended up admitting that a certain part of the firm was, in fact, a Ponzi scheme
that he had been having going on for a long period of time. It was Madoffs own sons that
worked with him at the firm that reported their father to the government. It was only a day later
that he was arrested on charges that included securities fraud, wire fraud, mail fraud, money
laundering, etc.
Madoffs firm have slowly gotten their money back but even to this day only half of the victims
have been paid off, $9.8 billion dollars have been recovered thus far.
full internal investigation. However, the SEC often took Madoffs word for things and didnt
push the issue.
Citations Page
Clark, Josh, and Jane McGrath. "Bernard Madoff's Ponzi Scheme - HowStuffWorks."
HowStuffWorks. Web. 24 Nov. 2014. <http://money.howstuffworks.com/ponzi-scheme5.htm>.
"Bernard Madoff Fast Facts." CNN. Cable News Network, 1 Jan. 1970. Web. 24 Nov.
2014. <http://www.cnn.com/2013/03/11/us/bernard-madoff-fast-facts/>.
Rushe, Dominic. "JP Morgan Chase to Pay More than $2bn in Penalties for Madoff Ties."
The Guardian. 7 Jan. 2014. Web. 24 Nov. 2014.
<http://www.theguardian.com/business/2014/jan/07/jp-morgan-bernie-madoff-settlement-fine>.
Smith, Aaron. "Five Things You Didn't Know about Bernie Madoff's Epic Scam."
CNNMoney. Cable News Network, 10 Dec. 2013. Web. 24 Nov. 2014.
<http://money.cnn.com/2013/12/10/news/companies/bernard-madoff-ponzi/>.
"Bernard Lawrence Madoff." Bio. A&E Television Networks, 2014. Web. 23 Nov. 2014.
Stoffel, Brian. "You're Wrong About Madoff, and That Ignorance Will Hurt You." You're
Wrong About Madoff, and That Ignorance Will Hurt You. 27 Apr. 2012. Web. 24 Nov. 2014.
<http://www.fool.com/investing/general/2012/04/27/youre-wrong-about-madoff-and-thatignorance-will-.aspx>.
Schmidt, Michael. "How To Avoid Falling Prey To The Next Madoff Scam."
Investopedia. Web. 24 Nov. 2014. <http://www.investopedia.com/articles/fundamentalanalysis/09/investing-due-diligence.asp>.