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The Bernie Madoff Scandal

 

            When people are thinking about the wall street, they think about those financial companies, hedge funds, and investment banks. Clients were told that the Wall Street will provide them the lowest risk and highest return investment, however, it was not true. Over the years, more and more investors becoming the Wall Street victims. They trust on their trader, believing their "safe" investment will bring the benefits but what happened was losing all of their money. One famous scandal was the Madoff case, a huge Ponzi scheme that resulted in billions of dollars of losses. People start asking why investors been so generous to the company, what kinds of trick they used and how can it happened with auditor's assurance.
             Bernard L. Madoff, who is 70, was treated as a pillar of the finance and charity, the chairman of Nasdaq. He founded the security trading company "Bernard L. Madoff Investment Securities LLC (BMIS)" in 1960 in New York City, he also ran an investment business to managed billions of dollars for individuals and foundations. By kept hidden from colleagues, packaging the business with mystery, investors were desirable to seeking the access(Creswell, J. & Thomas Jr., L).
             Mr. Madoff was also thought of as an affable man who treated his employees like family, a charismatic man that became the hero in Wall Street. It all seems like Bernard was extremely successful, however, on the other side of his company was a big lie (Creswell, J. & Thomas Jr., L). The truth was still under-covered in the first week of December 2008 until one of the clients requested to redeem back his $7 billion dollars. The company was then struggled with the liquidity. Under the great pressure of the liquidity, Bernard confessed to his sons that his business was a giant Ponzi scheme, which means the investment was never really existed. Mr. Madoff was arrested on 11 December; he scammed over $50 billion dollars from thousands of his clients (Voreacos, D.


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