Bernard Madoff Ponzi Scheme

Upon reading the Ponzi Schemes case study, there were a couple scam artists by the name of Charles Ponzi and Bernard Madoff. A Ponzi Scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered the payment of quick returns to the first investors from money by later investors. Ponzi schemes is also referred to as “robbing Peter to pay Paul” (Bethel University, 2015). Before Charles and Bernard, there was governor Rick Perry, a Texas native that caused commotions by referring to social security. Perry tried to argue that social security was not self-supporting and the money that was paid in by current workers to those already in retired rather than being invested for their own subsequent golden years. (Robb, 2012) Ponzi Schemes got its name by honoring Charles Ponzi, an Italian immigrant, who committed countless of failed endeavors. The failed endeavors were considered unskilled jobs that later ended when he got into trouble for continued theft and cheating customers. Charles later moved to Canada and spent time in prison due to passing a forged check. He found a way to get rich quick by using a vagary of

Ponzi started to recruit investors into his system with the promise of 50% returns in less than 90 days. The investors would pay their cash in and Ponzi would get them the promised return. Bernie Madoff, former investment advisor, stockbroker, convinced thousands of investors to hand over their savings, falsely promising profits in returns. Madoff somewhat used the Ponzi scheme, which he lured investors in by guaranteeing unusual high returns. Clients requested a total of $7 billion back in returns. Madoff only had $200 million to $300 million left to give. How Madoff got away so many years is by having many years of experience of experience of being a well-versed and active member of the financial industry. In 1960, he started his own market firm and helped launch the NASDAQ stock