Not only could madoffs employees not find a job they

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job and he even considered working in retail because he couldn’t find a job (Malter). Not only could Madoff’s employees not find a job, they were disgraced in front of everyone they knew because employees were associated with helping Madoff steal from people. Bernard didn’t act alone in the scheme, he had lots of help. Bernard’s accountant, David Friehling, gave the firm a clean bill of health every year, which investors relied on in deciding to invest their money in the firm (Dealbook). The SEC found that Friehling did almost nothing to monitor the operation of investment business but he still filed document with the SEC stating that he followed requirements for auditing a firm. Friehling was charged by the SEC securities fraud, investment advisor fraud, and making four false filings with the SEC (Dealbook). The SEC also filed a civil enforcement action stating that Friehling “did not perform anything remotely resembling an audit” (Dealbook). The criminal case against Friehling grew stronger by Friehling’s conflicts of interest in working for Madoff. Friehling received more than $10,000 a month and acted as the firm’s bookkeeper (Dealbook). His had about $14 million in his account before the Ponzi scheme came to light. Peter Madoff, Bernard’s brother, was also in on the scheme. He was the company’s chief compliance officer and his job was to ensure the protection of client funds and securities. On June 29, 2012, Peter Madoff, Bernard's brother, is arrested (Nasaw). Peter pleaded guilty to criminal charges including conspiracy to commit securities fraud and will serve 10 years in prison for his involvement in the scheme. Irwin Lipkin, longtime employee of Bernard Madoff, pleaded guilty to falsifying records which he claims date back to the 1980s (Katz). "While working for Bernie Madoff, I made accounting entries in financial records that I knew were inaccurate," Lipkin said (Katz). Lipkin retired in 1988 but he and his wife illegally remained on Madoff’s payroll even though he did not work (Katz). The main reason that most of the people helped Madoff was that they got money out of it. They didn’t care they were robbing people, all they cared about was getting money out it. These people were directly responsible for helping Madoff but the SEC was indirectly responsible. On May 2000, Massachusetts financial analyst Harry Markopolos tries to alert financial regulators to Madoff's
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Patel 6 fraud, saying his alleged trading strategy could never yield such continuously positive returns (Nasaw). Markopolos tried again and again over the next few years but the SEC ignored his warnings. The scheme grew as a result of the SEC’s negligence. Federal District Judge Denny Chin was the judge of the Bernard Madoff trial. Chin decided that Madoff deserved a maximum 150 year sentence. Nine victims, some crying, told the court the damage Madoff had caused, describing him as a psychopath who had destroyed their lives. “It feels like a nightmare that we can’t awake from,” said Carla Hirschhorn, a physical therapist who said her daughter was juggling two jobs in her junior year to help pay for college expenses that their lost savings were supposed to cover (Henriques2). Michael Schwartz, who said Mr. Madoff had stolen money set aside to sustain his disabled brother, hoped that “his
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  • Spring '13
  • WebsterBrenner
  • Business Ethics, Ponzi scheme, Bernard Madoff, Madoff

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