Write a 9 page essay on The Madoff.the Madoff In some cases the companies around the world, collaborate and act in regards to each other so as to form a collusive or cartel kind of a behaviour and act

Write a 9 page essay on The Madoff.

the Madoff

In some cases the companies around the world, collaborate and act in regards to each other so as to form a collusive or cartel kind of a behaviour and activity. This creates the scenario where the companies purposely cheat the common people or players in the market in regards to their money or other basic rights. In this case, the focus is on the securities fraud created by Bernard Madoff. Discussing about the origin of the fraud, it needs to be stated that the securities firm was started by Bernard Madoff in the year 1960 under the name of Bernard L Madoff Investment Securities LLC. The company was based in New York and was under the sole ownership of Bernard Madoff. Bernard Madoff also headed an investment advisory business which focused on taking billions of dollars from multiple wealthy individuals, institutional investors and middle class people. The middle class people were made to invest through feeder funds which belonged to that of Tremont Capital Management and Fairfield Greenwich Advisors. The performance record of Madoff was pretty impressive as well. Over a long period of around 15 years, he incurred a loss of around 13 months only. To keep a growth record which is clear of any suspicions from the investors, the owner of the investing firm Bernard Madoff kept showing annual gains of around 10 percent on an annual basis.

It is important to note that under the facade of sterling performance of the companies owned by Madoff, the greatest Ponzi scheme that might have existed in the financial sector of the world till date was pulled off. The reality behind the sterling performance of the companies owned by Madoff is that a Ponzi scheme was being executed where Madoff focused on using the money provided by new investors to repay the obligations of the previous ones. All the highly profitable facts, figures and reports that were displayed by the companies held by Madoff were completely fake in nature. Reports from various reliable sources highlight that on the December of 2008, Bernard Madoff had a meeting with his sons, where he disclosed that the entire business is complete fake and the fact that he owes around 7 billion USD to multiple clients. In that meeting he also wanted to distribute the Christmas bonus of the employees earlier than usual. After the meeting, the Madoff Juniors consulted with their individual and private attorney who placed the call to officials of the federal government on the evening of December 10. On 11 December, 2008 Bernard Madoff was finally arrested for the execution of a 65 billion USD Ponzi scheme. As of March 2009, Bernard Madoff was pleaded guilty in connection to around 11 acts of felony, which included the fraud of securities. After the weeks, following the arrest of Madoff, investors who lost out on large sums of money filed a number of class action lawsuits under the Southern District of New York (Benson, 3). 2. Explanation of the Madoff Fraud While explaining the Madoff Fraud for this particular assignment, it needs to be stated the entire explanation can be done in regards to the five tragic truisms that are very essential to be discussed and properly related in the assignment. First Tragic Truism The first tragic truism belongs to the category of people.