Madoff case Essay

1. What is the ethical issue touch on in the Madoff slip of paper?The Madoff case if filled with numerous ethical issues. The case is considered to be the largest scam in our nations history. The Madoff case is a great example of how some whiz who did not care about his profession, as well as the all the personal relationships he had cultivated all over the years. Bernie Madoff was pertain in a object called a Ponzi scheme. Madoff would take capital from new investors to pay off the current investors dividends. Since Madoff promised unrealistic gains this was the whole way to pay his investors. The Ponzi scheme was Names after Charles Ponzi who had tricked investors about a century before Madoff.To keep giving earlier investors their promised impart, Madoff had to continually truckle new population into the scheme. His family who claim they did not know about the scheme was also involved bringing in new clients to invest with Madoff. The endorsement grew very suspicious aft er the market lows in 2008 and Madoffs clients were dumb charmting high return on investment. The SEC who had been investing Madoff heart-to-heart and charged Madoff of running a Ponzi scheme. Madoff like Ponzi had a personality that the great unwashed trusted and handed over millions of dollars to invest. Madoff case was strange in character since it went on for so long. This case rightfully opened the eyes of many an(prenominal) investors and made them take a more active role in their investments.2. Do you believe that Bernie Madoff worked alone, or do you think he had overhaul in creating and sustaining the Ponzi scheme? As ready as Bernie Madoff may shit been he could not have pulled of the countrys largest Ponzi without some help. The return on investment that constantly beat market averages should have direct up red flags to people inside the beau monde. People within the company such as internal attendees, accounts and other in the internal transcription should h ave been really suspicious of the finical reports.Were the people in the Madoffs office asleep at the wheel? Or was something else not publicise happening behind the scenes? There were just in like manner many intelligent people who worked with Madoff not to see the writing on the walls. Auditing books for a touch of months may not have sent up red flags barely the fact the scheme went on for 30 years may show more people were involved. The size of the scheme and the amount of money involved makes it unbelievable and almost impossible that he could have perpetrated a abuse by himself.3. What should be done to help ensure that Ponzi schemes like this one do not happen in the future? The Security and alternate Commission (SEC) is the government body in charge of investigating national securities fraud. After cases like the Madoffs people always want more regulations exclusively fail to come up with a plan everyone can check up on on. More regulations may work but may not ne eds be the answer. The SEC has to help pass smarter legislation that well sends up red flags sooner so these schemes can be stopped. As much(prenominal) as the SEC can do, people are really the distinguish to stopping these schemes before they start. It is up to everyone to stop financial crimes, from the internal auditor that may see fishy finical reports, to the everyday investor who may be playting better than average returns with their investment firms.Before the Madoff case people may not have been so concerned about their high returns and just keep collecting them. Since the highly publicized Madoff case will really make people think twice before they get caught up in a Ponzi scheme themselves. The old adage if it is too good to be true it probably is comes to mind when dealing with Ponzi schemes. Investors really have be smart and really know where their hard earn money is going. It will be just a matter of duration before another Bernie Madoff comes and tries to scam pe ople, however if the SEC and investors are on the same page scams may be stopped before they get started.