Bernie Madoff Research Paper

Bernie Madoff, the man who created his own investment company Bernard L. Madoff Investment Securities LLC and also earned the notorious title of the man who ran one of the largest Ponzi scheme in United States history. Madoff’s scandal is arguably the largest in Wall Street history as well. One of the main reason he ended up getting caught was because the clients who were investing in his company wanted to redeem a solid chunk of 7 billion dollars worth of their investments when the stock market went under in 2008 which interfered and caused problems for his Ponzi scheme. Madoff ultimately was sentenced to 150 years in prison after he pleaded guilty to 11 felonies.

The Ponzi scheme got its name after the man Charles Ponzi. Ponzi told his investors that we would give them a 50% return on their investment in only 45-90 days. However, what he did was he took their money to pay off old debts while pocketing the rest of the leftover cash. Bernie Madoff created his own investment company with all of the money he had and also with a loan from his father in law Saul Alpern. Madoff’s company was known for a return of 10% on investments every year. When the 1980’s rolled around his company was handling more than 5% of the trading value in the New

He owed his investors approximately 7 billion dollars. In reality he only had no more than 300 million dollars. Madoff was reporting profits that were approximately 20 billion dollars, but altogether he stole a total of 65 billion dollars. However, Madoff’s firm raised red flags with the man who ultimately arrested him, Harry Markopolos. Markopolos noticed some issues and warning signs within Madoff’s firm 9 years before Madoff was arrested and sentenced. Markopolos was working as a portfolio manager for an equity derivatives asset management firm located in Boston when he was asked to look into Madoff’s