Bernie Madoff

In December 2008 Bernie Mad polish off was arrested under the suspicion of blind. His W in all Street firm, Bernard L. Madoff enthronisation Securities LLC, was founded in 1960. Madoff was the chairman of this telephoner done its entire existence until his arrest. Ponzi Schemes much(prenominal) as the one Bernie Madoff started at his company control been around for years the eldest existence Charles Ponzis scheme in the 1900s. Madoff made write up through his scheme as it is considered one of the largest financial frauds of all time.Madoff pulled the fraud off by pickings money from investors and charities, and promising huge re pass ons. Huge returns are exactly what his investors get as well. Madoff was able to miraculously grant his investors money with continually high percentages. Investors flocked to Madoff later on eyesight much(prenominal) great profits being made by others. Madoff ran his fraud operation anywhere from 18- 48 years. According to him the first fraud performed started in 1990 whereas, others conceptualize the company couldve possibly been illegitimate throughout its existence.How does a person romp thousands of people into investing in a fraud? An answer for that could be neat leadinghip. Madoffs clients were often multiplication people he knew on a personal basis. Portraying a self-image that showed echty, intelligence, and arrogance, Bernie had his investors trusting him not only financially, simply also on a personal level. Although his intentions were selfish, wrong, and ignorant, his followers trusted him fully. This allowed Madoff to continue his regale of simply taking money from one investment and giving it as a dedicateoff to another.A process so simple end up do thousands of people to be in debt. The totals of his fraud reach numbers game upwards of $50 billion. The next question that comes to mind is how do you take money from all these people and they never realize what is actually happening? Madoff s general employees didnt know that the company was a scam but his specialized congregation of employees did. (Several of the closer employees were also charged with crimes. ) These individuals were all separated from the rest of the company on their own floor.Inside the walls of this floor the company committed its fraud. After the reports were calculated, employees were told to change the reports to a more than satisfying result for the investors to see. The reports were sent with false information, often times having lodge in rates above 15%. Although these rates kept the investors, it brought attention of others after their returns werent coming back as high. Even when it wasnt plausible for the investments to make hardly any money his investors were continually beholding these high relate rates.Some felt obligated to notify the SEC during times interchangeable this but his company was always covering its tracks and the SEC often didnt smell like the allegations were wort h any pursuit what-so-ever. Fortunately Madoff had to pay the price for his crime. Madoff was sentenced to 150 years in prison in March 2009 after pleading guilty. As for the investors they were left with close to no thing. Some of the wealthiest in the United States were completely empty hand after the scandal surfaced. The government bailed out some of the investors but the numbers didnt compare to what investors lost.A master in deception, Bernie seemed trustworthy to the public and always delivered calm, compile responses to all questions of a scam whenever people began to question the legitimacy of the patronage as early as 1998. The SEC also questioned Bernie a few times where he was never suspected by them to be a heartrending threat. Although Bernie had several characteristics of a neat leader and credit line owner, it was all in abortive due to his lack of honest standards. Nobody can consider him a good leader or a good person after seeing his true plan for his inv estors.Madoff did apologize for his actions saying, I cannot adequately take out how dirty I am for what I pay done. Madoff indeed cant express this now. Whenever someone as powerful as Madoff once was comes forward admitting such information, its assumed that the public isnt going to have much sympathy. Madoff aim a new example for anyone trying to develop a scam. nearly operations such as his dont make it nearly as far as his. The mind set of these scam artists is to eventually turn the business legitimate or get out somehow.In order to make the business legitimate a person has to make enough money to pay off all the people they owe money to first which is impossible when you have a hole like Madoff did. When Ponzi schemes like this run their track its like a snowball effect. Madoff wasnt technically any closer to the cap as anyone trying a Ponzi scheme he was just roster a bigger snowball. Questionable leadership characteristics for Bernie Madoff would mostly be ethics bu t others would include Lack of respect for employees and investors, greed, arrogance, and irresponsibility.His ethics enigma is clearly seen by the fact of intentionally betraying thousands of people. His lack of respect includes not only putting his stave in danger of losing their jobs because of him but also because several investors (who sometimes had the confidence to invest all their money with him) lost their life savings thanks to Madoff. voracity was obviously one of Madoffs downfalls as well, due to the massive count of money he dealt with all day in his crimes.Arrogance shows with the note of him constantly being in contact with several of his investors and it not causing any problem with him because he thought he was unstoppable in his scam. Lastly, irresponsibility is outlined with every step of his process as he was trusted and didnt feel it necessary to do what he was saying he was doing with the peoples money. These braggy characteristics are what led to the fall of Bernie Madoff. Its unknown how long Madoff spent performing this scheme but if he told the truth about the scam starting in 1990 its a shame.To have as much as Madoff had in 1990 would make most people ecstatic, and to see him blow all his honest lifetime earnings and business position just to pull off a Ponzi scheme must be one of the most ridiculous ideas ever constructed. To look at where Mr. Madoff couldve been if he wouldve been less greedy and used his good leadership skills for good Bernie might be one of the great business leaders to go down in history. Going down in history that way would really be a blessing to him now and probably more valuable than any amount of money.If there was only one thing to learn from the Bernie Madoff story it is that, without ethics no leader is worth following. To become a good leader you have to have people trust you. Madoff did have people trust him for a long period of time but his lies caught up to him and now all his legacy holds is a bad reputation. If leader is ethical and good to the people he or she is leading then there wont be a situation like Madoffs which ended in total abomination. Works Cited Scam of the Century Bernie Madoff & The $50 Billion Heist. CNBC. com. Cnbc, n. d. Web. 27 Jan. 2013.Bernie MadoffIn December 2008 Bernie Madoff was arrested under the suspicion of fraud. His Wall Street firm, Bernard L. Madoff Investment Securities LLC, was founded in 1960. Madoff was the chairman of this company through its entire existence until his arrest. Ponzi Schemes such as the one Bernie Madoff started at his company have been around for years the first being Charles Ponzis scheme in the 1900s. Madoff made history through his scheme as it is considered one of the largest financial frauds ever.Madoff pulled the fraud off by taking money from investors and charities, and promising huge returns. Huge returns are exactly what his investors received also. Madoff was able to miraculously make his investors mon ey with continually high percentages. Investors flocked to Madoff after seeing such great profits being made by others. Madoff ran his fraud operation anywhere from 18- 48 years. According to him the first fraud performed started in 1990 whereas, others believe the company couldve possibly been illegitimate throughout its existence.How does a person trick thousands of people into investing in a fraud? An answer for that could be good leadership. Madoffs clients were often times people he knew on a personal basis. Portraying a self-image that showed honesty, intelligence, and confidence, Bernie had his investors trusting him not only financially, but also on a personal level. Although his intentions were selfish, wrong, and ignorant, his followers trusted him fully. This allowed Madoff to continue his process of simply taking money from one investment and giving it as a payoff to another.A process so simple ended up causing thousands of people to be in debt. The totals of his fraud r each numbers upwards of $50 billion. The next question that comes to mind is how do you take money from all these people and they never realize what is actually happening? Madoffs general employees didnt know that the company was a scam but his specialized group of employees did. (Several of the closer employees were also charged with crimes. ) These individuals were all separated from the rest of the company on their own floor.Inside the walls of this floor the company committed its fraud. After the reports were calculated, employees were told to change the reports to a more satisfying result for the investors to see. The reports were sent with false information, often times having interest rates above 15%. Although these rates kept the investors, it brought attention of others after their returns werent coming back as high. Even when it wasnt plausible for the investments to make hardly any money his investors were continually seeing these high interest rates.Some felt obligated t o notify the SEC during times like this but his company was always covering its tracks and the SEC often didnt feel like the allegations were worth any pursuit what-so-ever. Fortunately Madoff had to pay the price for his crime. Madoff was sentenced to 150 years in prison in March 2009 after pleading guilty. As for the investors they were left with close to nothing. Some of the wealthiest in the United States were completely empty handed after the scandal surfaced. The government bailed out some of the investors but the numbers didnt compare to what investors lost.A master in deception, Bernie seemed trustworthy to the public and always delivered calm, collected responses to all questions of a scam whenever people began to question the legitimacy of the business as early as 1998. The SEC also questioned Bernie a few times where he was never suspected by them to be a serious threat. Although Bernie had several characteristics of a good leader and business owner, it was all in vain du e to his lack of ethical standards. Nobody can consider him a good leader or a good person after seeing his true plan for his investors.Madoff did apologize for his actions saying, I cannot adequately express how sorry I am for what I have done. Madoff indeed cant express this now. Whenever someone as powerful as Madoff once was comes forward admitting such information, its assumed that the public isnt going to have much sympathy. Madoff set a new example for anyone trying to develop a scam. Most operations such as his dont make it nearly as far as his. The mind set of these scam artists is to eventually turn the business legitimate or get out somehow.In order to make the business legitimate a person has to make enough money to pay off all the people they owe money to first which is impossible when you have a hole like Madoff did. When Ponzi schemes like this run their track its like a snowball effect. Madoff wasnt technically any closer to the top as anyone trying a Ponzi scheme h e was just rolling a bigger snowball. Questionable leadership characteristics for Bernie Madoff would mostly be ethics but others would include Lack of respect for employees and investors, greed, arrogance, and irresponsibility.His ethics problem is clearly seen by the fact of intentionally betraying thousands of people. His lack of respect includes not only putting his staff in danger of losing their jobs because of him but also because several investors (who sometimes had the confidence to invest all their money with him) lost their life savings thanks to Madoff. Greed was obviously one of Madoffs downfalls as well, due to the massive amount of money he dealt with every day in his crimes.Arrogance shows with the note of him constantly being in contact with several of his investors and it not causing any problem with him because he thought he was unstoppable in his scam. Lastly, irresponsibility is outlined with every step of his process as he was trusted and didnt feel it necessar y to do what he was saying he was doing with the peoples money. These bad characteristics are what led to the fall of Bernie Madoff. Its unknown how long Madoff spent performing this scheme but if he told the truth about the scam starting in 1990 its a shame.To have as much as Madoff had in 1990 would make most people ecstatic, and to see him blow all his honest lifetime earnings and business position just to pull off a Ponzi scheme must be one of the most ridiculous ideas ever constructed. To look at where Mr. Madoff couldve been if he wouldve been less greedy and used his good leadership skills for good Bernie might be one of the great business leaders to go down in history. Going down in history that way would really be a blessing to him now and probably more valuable than any amount of money.If there was only one thing to learn from the Bernie Madoff story it is that, without ethics no leader is worth following. To become a good leader you have to have people trust you. Madoff d id have people trust him for a long period of time but his lies caught up to him and now all his legacy holds is a bad reputation. If leader is ethical and good to the people he or she is leading then there wont be a situation like Madoffs which ended in total abomination. Works Cited Scam of the Century Bernie Madoff & The $50 Billion Heist. CNBC. com. Cnbc, n. d. Web. 27 Jan. 2013.