Casey and Markopolos discover the truth during this discussion; "And after four hours of work or so, came up and said, 'Frank, this is a Ponzi scheme.' I said, 'Harry, that's a strong word.'. And Harry says: 'Look at this. The market goes down. He's not hurt at all. He produces 1 percent. Market goes up, he produces 1 percent.'" (PBS).
Through this reference, it is evident that people were beginning to catch on to Madoff's fraudulent success. Casey and Markopolos are claiming that Madoff's hedge funds do not change with the changes in the market and found this to be disbelieving. Due to apprehensions about Madoff's hedge fund company, Casey sends a letter to the Securities and Exchange.
Commission office in Boston voicing his worries. The SEC in Boston claims that there is nothing they can do and suggests he speaks with the New York office. Soon after, Casey confronts a hedge fund investigator who interviews Madoff, but he suspects nothing out of the ordinary. Another sign of fraudulency within Bernie Madoff's company would be that many of Madoff's family members held crucial positions at the company. Madoff's family members included his brother, his nephew, his oldest son, his youngest son, his niece, and his oldest.
son's niece as well. There is a claim that; "this is an obvious weakness of the internal controls meant to safeguard investors' assets from fraudulent activities," (Gregoriou). This reference states that with his family members' involvement in the company, it was easiest for Madoff to disguise the fraudulency that was occurring because there is trust within a family. The investors.
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The third sign that Bernard L.
