Madoff

, led many investors of Madoff to withdraw their m atomic derive 53y. With the acceleration of the market downturn, Madoff was face with $7 billion in redemptions and had no way of skirmish it. Recognizing that his proposal was active to unravel, he confessed to his sons ab come forward his illegal activities, who in turn reported him to national authorities. The next day on December 11th 2008 national authorities arrested Madoff charging him with securities fraud and otherwise charges. Investigators revealed that Madoff was running a Ponzi scheme that saw investors losing $50 billion. match little might was he fitted to pull off a fraud of this magnitude. Here atomic number 18 a list of reasons wherefore: 1. Most of the accounts opened at Madoffs firm were done bullion of Funds or participated by the use of Funds of Funds with no source of Madoff. 2. The Funds were audited by go along accounting firms creating specious legitimacy of Madoff. 3. Madoffs acco untant was a little cognise firm, which made it easy for him to conceal his colonial operations. 4. Madoff was an investment advisor, not a Fund. In addition he did not point until 2006. 5. He declared considerably less accounts to the regulators than what he rattling had. 6. He did not utilize trine parties for trades. He purported to do everything in-house.

Another reason that he was able to get by with the fraud is the failure of the mo to acknowledge it despite many warnings that the Madoff operation showing signs of being a Ponzi scheme. One field of view that the SEC failed was the way they conkle d complaints and tips about Madoffs operatio! n. As furthermost back as 2000, different individuals pass on been express concerns of Madoff having no independent auditor, inconceivably consistent returns with near-perfect timing, and, to the highest degree of all, the unfitness to identify any trading volume or counterparties inwrought to execute the strategy (cnn.com). Different departments within the SEC investigated complaints about Madoff but did not know it. This gave the impression of one hand did...If you want to get a full essay, set out it on our website: BestEssayCheap.com

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