Description
Students will watch and reflect on the movie "The Madoff Affair - PBS." Students may also utilize other Internet resources as appropriate.
- In your own words, briefly describe Madoff's business and how they made money
- Describe two (2) enablers (people or processes) that helped Madoff defraud his investors (e.g., shell companies)
- Describe one (1) regulatory change that happened as a result of Madoff and similar activities.
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
1
The Madoff Affair
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2
The Madoff Affair
Business overview
Bernard Madoff was an American financier that executed the largest Ponzi scheme by
defrauding thousands of investors, approximately ten billion dollars in seventeen years or more.
Bernie Madoff died recently in prison, serving a 150 years sentence for securities fraud and
money laundering, among other financial related felonies (Hayes, 2021).
Briefly describe Madoff's business and how they made money.
Madoff was a money manager responsible for the largest financial fraud that ever existed
to date. Madoff's Ponzi scheme worked by attracting more investors with the guarantee of
making higher returns on their investments. As the central operator, the accused used the money
acquired from new investors to pay off the older promises and the operation made the business
seem profitable and authentic. Madoff made larger amounts of cash and used the illegal money
to expand the business operation through the process
Describe two (2) enablers (people or processes) that helped Madoff defraud his investors
To enhance the sustainability of the fraud business, Madoff used to operate and ensure a
representation of safe and secure investments by using the investors' funds as collateral on credit
lines.
Describe one (1) regulatory change that happened as a result of Madoff and similar
activities.
After the events unfolding Madof...
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