Who were the affected parties list3?
All investors/Stakeholders
Charities
Family
Friends
Employees
Economy
What were 2 long term consequences?
Jail Time
Paying Retribution
What is a Ponzi Scheme?
Promising above-average returns for their investment. Ponzi makes no “real” investments other than paying back previous investors. The cycle of paying one investor (and pocketing a lot of for himself) by collecting from another investor.
Who other than Madoff could have potentially preserved the integrity of the company?
Report Madoff
On ____ date Madoff pleaded guilty to ___ counts of felony.
March 12, 2009
11 Counts
When JoAnn Crupi was asked to create the “special financial books” what was her legal obligation?
Report Madoff
What are some checks & balances that could have potentially prevented this from going on for over 20 years?
SEC’s negligence
Auditors negligence
Employee’s negligence
Armature investors making large investments
Which investment group lost the largest amount of funds & how much?
Fairfield Greenwhich Group
$7.5 billion
State 3 Red Flags
No Guarantee of Return
Closed trading System developed by Madoff
The volume Madoff reported trades for his clients does not correspond with the actual volume of trading.