Madoff Jeopardy

1

100

Who were the affected parties list3?

• All investors/Stakeholders

• Charities

• Family

• Friends

• Employees

• Economy

200

Who other than Madoff could have potentially preserved the integrity of the company?

• Report Madoff

300

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

2

100

What were 2 long term consequences?

• Jail Time

• Paying Retribution

200

On ____ date Madoff pleaded guilty to ___ counts of felony.

March 12, 2009 

11 Counts

300

Which investment group lost the largest amount of funds & how much?

• Fairfield Greenwhich Group

•  $7.5 billion

3

100

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.

200

When JoAnn Crupi was asked to create the “special financial books” what was her legal obligation?

• Report Madoff

300

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.