Bernie Madoff

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Bernie Madoff
America has seen its share of fraudsters who have defrauded innocent civilians of their savings through the establishment of Ponzi schemes used as the tool for duping the public. Bernie Madoff is one of the famous white-collar criminals in American history that was responsible for deceiving investors most of whom had committed their savings out of $65 billion in investment. Ponzi schemes are not a new phenomenon but have neem in existence since the 1950s. They refer to financial scams where the investment is premised on the promise of high returns to the investors without the possibility of high returns. However, the entire model was a ruse where the central operator, uses the investment of new investors to finance the gains of the already existing ones.
This was facilitated by the presence of a feeder fund connected to a master-fund which in this case was Fairfield Greenwich. It was sued together with the perpetrator Bernie Madoff for not doing diligence to the investors who lost billions in savings. However, all the involved parties were blamed for being over complacent on the matter and investors were so interested in making profits that they did not review their statements (Sander 99). It would have been possible for them to identify inconsistencies such as the ones the whistleblower, Harry Markopolos forwarded to the SEC as evidence that Bernie Madoff was running a Ponzi scheme.
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