Pbs Madoff Reflection

In: Business and Management

Submitted By dreck856
Words 319
Pages 2
John Sawyer
14 April 2015
The Bernie Madoff Affair PBS’s frontline brings us another documentary investigating Bernie Madoff’s manipulative career of investment advising. He started trading stocks with his family working for him making money markets. Michael Bienes is hired by Madoff to recruit investors. Madoff ran his side business of investment advising completely under the radar. He promised high returns of around 18%. Immediately whole families were jumping in blindly at the high reward. He told Bienes that if he could recruit people to invest with Madoff, he could produce a 20% return and Bienes would get a portion. Within his business, no eyebrows were raised and Madoff called the shots and was extremely respected by everybody. Doubts started to occur when Madoff advised Avelleno and Bienes not to license under the SEC. As Bernie was calling the shots, Bienes didn’t license. Madoff continuously sold unregistered securities and Avelleno and Bienes eventually got caught up by the SEC. They were being questioned about their returns and were accused of running a Ponzi Scheme. The SEC shut them down. Many red flags were raised about Madoff’s trading model. Madoff claimed he didn’t want to expose his secret trading techniques. Persistent with taking down Madoff, an SEC investigator Marco Polos wrote a 21-page paper to investigate Madoff’s business and a possible Ponzi scheme. SEC finally launched an investigation. Two-years later, he was cleared. But when the economy went down and people actually needed to withdraw their money, there was no money to be taken out. Madoff confessed that it was one big lie. Madoff was the most manipulative investor there ever was. He showed no remorse for taking all of his clients’ money. There were many lives that were ruined forever. Even in one case a suicide was committed because of the grief that was…...

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