Case Study Of Bernie Madoff

In December 2008, Bernard "Bernie" L. Madoff owner of Bernard L. Madoff Investment Securities LLC wasarrested for committing a $50 billion investment fraud, which later was found to be $65 billion (Bernard L. Madoff. February 9, 2009).Bernard Madoff 's business was an investing firm that pulled off a massive fraud. His firm took money from several people, rich or poor, it did not matter. His victims were Jewish philanthropists from the Upper East Side of New York, almost half the members of the Palm Beach Country Club, retired accountants living in Florida, film stars and several charitable organizations(Ahamed, L. 2011, May 14). In court 33 years old, Michael Swartz of New Jersey said, "I hope his sentence is long enough so his jail cell will become his coffin." Swartz said his family 's funds with Madoff had been for the care of is mentally disabled brother (Robert, F. and Efrati, A. 2009, June 30). Madoff was eventually charged with eleven felony charges including securities fraud, investment adviser fraud, mail fraud, wire fraud, money laundering, false statements, perjury, false filings with the United States Security and Exchange Commission ("SEC"), and theft from an employee benefit plan (United States v. Bernard L. Madoff and Related Cases). Madoff violated the Federal Securities Laws of 206 (1) and 206 (2) of the Advisers Act of 1940, which regulates investment advisers(Bernard L. Madoff. December 19, 2008). With certain exceptions, this Act requires that firms or sole practitioners compensate for advising others about securities investments, must register with the Security and Exchange Commission also conform to regulations designed to protect investors. Generally, only advisers who have at least $100 million of assets under management or advise a registered investment company must register with the Commission. Madoff also violated the Securities Act of 1933, which is referred to as the "truth in securities" law, which has two basic objectives: (1) require that investors receive financial and other significant information concerning securities being offered for public sale; and (2) prohibit deceit, misrepresentations, and other fraud in the sale of securities. Another law Madoff violated was the Securities Exchange Act of 1934 with this Act, Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation 's securities self-regulatory organizations (SROs). The various securities exchanges, such as the New York Stock Exchange, the NASDAQ Stock Market, and the Chicago Board of Options are SROs. The Financial Industry Regulatory Authority (FINRA) is also an SRO. The Act identifies and prohibits certain types of conduct in the markets and provides the Commission with disciplinary powers over regulated entities and people associated with them. The Act also empowers the SEC to require periodic reporting of information by companies with publicly traded securities (Federal Securities Laws). No one knows for sure exactly when the Bernie Madoff Ponzi …show more content…
n.d.). Madoff’s office was located at 885 Third Avenue, New York, NY 10022 (Buisnessweek.com. n.d.). With the help of Madoff’s father-in-law, a retired C.P.A. the Bernard L Madoff Investment Securities LLC company attracted an impressive client list (Bernard Lawrence Madoff. 2014). Madoff had hundreds of victims; some of them were members of his Jewish community who he met through country clubs and social networks some were his friends and family (Bernard Lawrence Madoff. 2014).Burt and Joanne Meerow became victims of Madoff’s fraud in 2004 after Mr. Meerow retired from his consumer testing business. The Meerow’s placed their proceeds with a Madoff-linked fund after they heard about Madoff at their country club. The couple planned a comfortable retirement until they received a call while at the doctor’s office, Burt took the call on his cell phone and began crying out in panic, “I have no money, I have no money” he said. After hearing of Madoff’s arrest, they sold their New Jersey home for a good price and lost money on a Florida golf-club condominium. They sold their share of a ski home in Vermont and bought a smaller home.Mr. Meerow stated, “When your life gets altered overnight, you realize you don’t have to keep doing everything you’ve been doing”(Henriques, D. 2013, December