People involved
Who was the chairman of Bernard L. Madoff Investment Securities?
Bernard Madoff
What year was he arrested for his scheme?
2008
Who is Bernard Madoff?
Founder of Bernard L. Madoff Investment Securities.
What was the name of the scheme?
Ponzi Scheme
Name the accountant who worked for Bernard Madoff.
David G. Friehling
What happened first, Marks death or the lawsuit against the family?
Lawsuit
How much money did he invest into the company?
$5000
What did they offer to their investors that was so appealing?
Low risk and high returns
Who turned Bernard Madoff in to the police?
His sons Mark and Andrew Madoff
What year was he sentenced to jail?
2009
Who was Bernard Madoff's brother?
Peter Madoff
What was the investing strategy that he claimed to have used to generate returns called?
split-strike conversion
Name one of the victims of this scandal.
Michael De Vita or Rene-Thierry Magon de la Villehuchet
What year did they decide to pay back the victims the money that they lost?
2012 and 2014
How long was he sentenced to prison?
150 years
Name one of the accounting principles broken.
objectivity principle
prudence concept
full disclosure principle
Name a celebrity that was Madoff’s client.
Steven Spielberg or Kevin Bacon
What year was the company founded?
1960
How much did Madoff have to forfeit in personal assets?
$170 million
Explain how a ponzi scheme works.
A ponzi scheme is a form of accounting fraud in which high rates of return (money earned from an investment) are promised to investors. However, this money is not actually earned through investments. The money returned to older investors is money that is collected from new investors.