bernie madoff Flashcards
What was Bernie Madoff know as?
a ‘financial wizard’
Give me 3 why people wanted to invest with Bernie Madoff?
he had a good reputation, he was company chairman, he had been investing for 50+ years.
What type of crime was Bernie Madoff involved in?
corperate crime
What was Bernie Madoff involved in?
one of the largest and longest ponzi schemes in history
What did the investors reports show?
that their invested money was doing really well
How was Madoff paying the investors?
he was giving them back a percentage of their own money to make it look like they where making money
Did Madoff invest peoples money into stocks?
No
How did Madoff get away with the Ponzi scheme for so long?
he had a good reputation and his documentation was believable
What return rate did Madoff use?
12% return
Why wasn’t Madoff reported to the authorities?
It did get reported to the authorities, but nobody followed it up because of his reputation and nobody believed a positive scheme could be to such a large scale.
Who turned Madoff in to the authorities?
His two sons.
Who were the victims of the scheme?
everyone that invested with him
How did people get their money back after people found out about the scam?
Madoff victim fund
Why did people withdraw their money?
due to the 2008 stock dip people got worried about loosing out on money
What did Madoff do when people withdrew their money
he gave it back to them, but couldn’t pay everyone back all their money as he no longer had it.
