Bernie Madoff
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BERNARD LAWRENCE “BERNIE” MADOFF
KIM JONES
PROFESSOR RYAN KOPF
BUSINESS LAW I
AUGUST 20, 2010
1. Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business.
Mr. Madoff engaged in fraud, theft and deceptive practice while operating a ponzi scheme for over 20 years. Fraud was committed because he intentionally took money from people knowing that he could not give the returns he promised knowing the only person/people to gain from these investments was Mr. Madoff and his family. Mr. Madoff committed theft when he used people investments monies to repay other clients/investor returns when they asked to redeem shares. This practice was a clear case of dishonesty because he used their money without their consent to pay off his debts. Deceptive practices was the entire business, Mr. Madoff continually marketed that his firm could produce positive returns on all monies invested. He created phony statements each month to send to clients/investor stating that their investment was making money this was misleading and false information.
2. Name three types of parties who were impacted by the actions of Mr. Madoff and describe how they were impacted.
David Friehling was Mr. Madoff, “accounting front man pleads guilty to securities fraud, investment adviser fraud, making false filings to the Securities and Exchange Commission, and obstructing the IRS”, (Bernie Madoff. (n.d.). Wikipedia). Cohmad
Securities Corporation was brought up on charges by the Securities Exchange Commission for “actively marketing investment opportunities with Madoff while knowingly or recklessly disregarding facts indicating that Madoff was operating a fraud.” (U.S. Securities Exchange Commission, Litigation Release No. 21095 / June 22, 2009). Finally thousands of everyday people have lost their life savings due to investing with Mr. Madoff.
3. Describe...
KIM JONES
PROFESSOR RYAN KOPF
BUSINESS LAW I
AUGUST 20, 2010
1. Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business.
Mr. Madoff engaged in fraud, theft and deceptive practice while operating a ponzi scheme for over 20 years. Fraud was committed because he intentionally took money from people knowing that he could not give the returns he promised knowing the only person/people to gain from these investments was Mr. Madoff and his family. Mr. Madoff committed theft when he used people investments monies to repay other clients/investor returns when they asked to redeem shares. This practice was a clear case of dishonesty because he used their money without their consent to pay off his debts. Deceptive practices was the entire business, Mr. Madoff continually marketed that his firm could produce positive returns on all monies invested. He created phony statements each month to send to clients/investor stating that their investment was making money this was misleading and false information.
2. Name three types of parties who were impacted by the actions of Mr. Madoff and describe how they were impacted.
David Friehling was Mr. Madoff, “accounting front man pleads guilty to securities fraud, investment adviser fraud, making false filings to the Securities and Exchange Commission, and obstructing the IRS”, (Bernie Madoff. (n.d.). Wikipedia). Cohmad
Securities Corporation was brought up on charges by the Securities Exchange Commission for “actively marketing investment opportunities with Madoff while knowingly or recklessly disregarding facts indicating that Madoff was operating a fraud.” (U.S. Securities Exchange Commission, Litigation Release No. 21095 / June 22, 2009). Finally thousands of everyday people have lost their life savings due to investing with Mr. Madoff.
3. Describe...