Discussion Post: Bernie Madoff
Read the following articles or other related articles regarding the Bernie Madoff case and then answer the questions below:
Short Answer Questions
• What type of fraud scheme did Bernie Madoff commit?
• What was Bernie Madoff's monthly average return to his clients?
• How long did this monthly average return last?
• Describe the demographics of Bernie Madoff's customer base.
• How was Madoff's scheme discovered?
• Did anyone attempt to inform the regulators about Madoff's scheme? If so, who?
Task
• In general, would you define Bernie Madoff's clients as sophisticated investors or naive? Why?
• Whether you described Bernie Madoff's customers as naïve or sophisticated, what trait(s) allowed his clients to become victims?
• Why wasn't Bernie Madoff's scheme caught earlier?
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.
Reference:
• Jason Zweig, "How Bernie Madoff Made Smart Folks Look Dumb," Wall Street Journal, December 13, 2008.
• Zachary Goldfarb, "SEC Broadens Its Probe of Failures in Madoff Case," Washington Post, January 6, 2009.