Madoff Case

20102004 Thi Ngoc Thuy Do 1. What are the ethical issues involved in the Mad finish impinge on case? Bernard Madoff was accused of fraud and creation of a Ponzi organization which lead to a $65 billion investment loss for hundreds of investors in over the world. Bernard Madoff started a ratified business by buying and selling over the counter stocks that were not listed on NYSE. He deceived many people into thinking his operation as legitimate, and completely abused his respectable name and position of baron for his own personal advances.He lied to his friends and clients from the beginning and as later documented in his everyocution, he never invested any of the money he got. He became a thief. Madoff started a Ponzi scheme on levels never seen before. Madoff take from friends, family and investors. Madoff did not invest the money as he promised he simply used it to pay off the first assemble of investors at very high return rates (10-12%), so he could make more money. There were also jobs given to family members who could have athletic supportered the scheme. Madoffs daughter was also married to a former Securities and Exchange Commission attorney.His companys financial reports were never made public during the m of the scheme. I wonder how his company passed the tax audition imposed question on the SEC informal system. There is a big question for US government system. 2. Do you believe that Bernard Madoff worked alone, or do you think he had help in creating and sustaining his Ponzi scheme? Would this represent a conflict of enkindle? communicate as a Jew on Christmas, I would be less shocked if Santa Claus showed up to my house than if Bernie Madoff pulled off this fraud alone, says Ron Geffner, a partner at law firm.So,I definitely believe Bernard Madoff did not work alone, he had help in creating and sustaining his Poniz scheme for 30 years. Without his accountants, family members, and other employees covering up his tracks, he wouldnt have g otten away with misleading so many officials who certified his operation as legitimate. Since these people were satisfied with the constant returns. They all shared in an expensive living condition, nobody questioned was made. Without these people, Madoff wouldnt have held up his operation for so long. wherefore internal accounting and auditing make no sense or Madoffs action. How Madoff elude investigation of SEC by transfer between his account and his familys account, those questions show that Bernard Madoff need others help, he could not do these alone. The motivation of Madoff to setPonze scheme is very pure which only for money. The conflict of interest exists, the conflictis between personal interest and public interest, Madoff and his family enjoys their luxury life style by cheating, public interest gets hurt. 3. What should be done to help ensure that Ponzi schemes like Madoffs do not happen in the future?In order to proscribe Ponzi schemes from recurring, internal contro ls and compliance standards that detect misconduct must be implemented. Awareness on these types of crimes needs to be raised as well. Investors should pay closer attention and realize that just because someone may await to have a perfect resume, doesnt mean theyre completely well fit and will act ethically. The grocery is unpredictable, so no one can ensure 100% for your interest in future. Furthermore, Government should dominate SEC effectively, so people can trust them before incident occur.