The History About Scammer Bernie Madoff

Bernie Madoff began what was possibly the greatest Ponzi scheme ever seen by giving investors false promises. He would seemingly be able to give people near impossible rates of return, and this meant deals people couldn’t possibly refuse. His clients rarely questioned how he was able to do this, or if what he was doing was legal, but he would always reassure them things were on the up and up. However, this was a nothing more than a lie. He was only using the money given to him from his newer investors to pay off his old ones, all while making money for himself in the process. Not only was he committing fraud, by he was lying and stealing from thousands of people all under the guise of helping them.

Without question the one at fault here was Bernie Madoff himself. He was the one knowingly committing fraud and knowingly tampering with the lives of thousands of clients. That being said, there were steps that could’ve been taken that weren’t from others as well. He had plenty of clients, friends even, who were uneasy about the results Bernie was able to produce. Individuals like Michael Bienes seemed to be rightfully suspicious of things but never looked into it. Instead, he took Bernie at his word and just accepted he was making money. It is easy to see how someone could be tempted to look the other way when they are making that kind of money, and surely Michael Bienes had no idea how far things had truly gone, but he at the very least should not have taken advantage of a situation he should’ve known better about. Government authorities also could’ve been faster to address the situation. The SEC conducted multiple investigations and yet Bernie was still getting away with his scheme. So, while Bernie is certainly the one to blame, he was enabled to do so by others.

 The first thing that could be done with business and regulatory practices to keep something like the Madoff affair from happening again would have to be greater vigilance. As stated by Harvey Pitt, the chairmen of the SEC from 2001 to 2003, if an investment advisor services more than 15 or more clients it is supposed to set off red flags. Yet despite the fact Madoff had around 3,200 clients, and had suspicious activity traced to him via the situation with Michel Bienes, they somehow missed him. It should be a rule to check up on an investment advisor for going over the limit, not allowing to get anywhere near the thousands. There should also be a much stricter licensing process for these types of services so people can’t get away with these things “under the table” so to speak. Furthermore, if people are caught conducting these schemes, they should be barred in some capacity or put on some sort of watch list, I would say. This way you don’t have them continuing to conduct business like Bienes did even after being supposedly shut down.

My views on how the SEC handled the Madoff investigation is embarrassing to say the least. They missed multiple opportunities to stop Madoff before things started spiraling out of control and did nothing. They even had their work done for them by Harry Markopolos and still had the nerve to clear Madoff after approaching him personally. The fact that Madoff was only caught after it became obvious to everyone that something was not right speaks volumes of either the SEC’s incompetence or possible corruption. I can only imagine if it wasn’t just that they were terrible at their jobs, they must’ve made some sort of deal, which is despicable if true.

I will admit, part of me always finds it a little odd when a criminal is sentenced a jailtime longer than they could possibly live. I never understood why the ruling isn’t just “life” instead of a specific number like that. Regardless, having to spend the rest of his life reviled and behind bars is well earned. Madoff damaged so many lives so greatly and without a hint of remorse that he never deserves to walk free again. I can only hope he isn’t sitting comfortably in some low security, well managed prison and relaxing. After what he did, I think he should be denied any comfort his former lifestyle granted him.