Bernard Madoff

In: Business and Management

Submitted By Starla
Words 2352
Pages 10
MVE220 Financial Risk

The Madoff Fraud

Shahin Zarrabi – 9111194354 Lennart Lundberg – 9106102115

Abstract: A short explanation of the Ponzi scheme carried out by Bernard Madoff, the explanation to how it could go on for such a long period of time and an investigation on how it could be prevented in the future. The report were written jointly by the group members and the analysis was made from discussion within the group

1. Introduction Since the ascent of money, different techniques have been developed and carried out to fool people of their assets. These methods have evolved together with advances in technology, and some have proved to be more efficient than other. One of the largest of these schemes ever carried out occurred in modern times in the United States, it was uncovered as recently as in late 2008. The man behind it managed to keep the scheme running for over 15 years in one of most monitored economic systems in the world. The man in charge of the operation, Bernard L. Madoff, got arrested for his scheme and pled guilty to the embezzling of billions of US dollars. It struck many as unimaginable how such a fraud could occur in an environment so carefully controlled by regulations and supervised by different institutions. The uncovering of the scheme rose questions on how this could go undetected for such a long time, and what could be done to avoid similar situations in the future. This report gives an insight on how the Madoff fraud was carried out, how it could go unnoticed for so long and if similar frauds could be prevented in the future.

2. The Madoff fraud…...

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