THE CASE BERNIE MADOFF

Question 1

Bernie Madoff
Period:

Answer 1

Founded in 1960; scheme exposed in December 2008.

Question 2

Bernie Madoff Event

Answer 2

Madoff promised high, consistent returns to investors, claiming a unique trading strategy.

Question 3

Bernie Madoff Cause

Answer 3

Operated a massive Ponzi scheme, using new investor money to pay returns to earlier investors. The scheme collapsed when the 2008 financial crisis led to a surge in withdrawal requests, revealing the lack of actual investments.

Question 4

HOW MUCH MADOFF STOLE

Answer 4

AROUND 65 BILLION

Question 5

Principles Ignored:
Promised high returns with low risk, misleading investors about the nature of investments. No real risk was managed, leading to unsustainable payouts.

Answer 5

Risk-Return Trade-Off:

Question 5

Principles Ignored:
Focused on reported profits rather than actual cash flow. Investors failed to recognize that profits were illusions supported by new investor funds

Answer 5

Cash - Not Profit - Is King:

Question 5

Principles Ignored:
Deceived clients for personal gain, violating trust and ethical standards. His actions resulted in massive financial and emotional harm to investors.

Answer 5

Ethical Behavior Is Doing the Right Thing: