StudentShare solutions
Triangle menu

Madoff LLC Fraud - Research Paper Example

Not dowloaded yet

Extract of sample
Madoff LLC Fraud

Andrew invested his funds in the company, however he was stopped from doing so by Mark in the year 2001 (Glovin & Scheer, 2011). The company made use of the numerous marketing tactics for the purpose of drawing the customers and thus stimulating a new era where electronic trading was of priority. The company has been a highly profitable security firm tapping enormous volume of the stock trades from the Big Boards. The company during its initial days used to deal with the Over-The-Counter along with Pure-Brokerage-Pink Sheets transactions. It was because of the Rule 390, the company was able to trade in NYSE stocks. For the purpose of altering the execution practices, the company had to utilize the Cincinnati Stock Exchange. It has been evident that among the five brokers, Madoff has been one of them who had been involved in the creation of the NASDAQ. It was noted that the company’s spread was quite sublime. It started as an investment advisory firm. It has been noted that the company had not been recorded in the stock exchanges till 2006. It can be stated that in terms of the US Securities by the year 2000, Madoff Securities had been successful at becoming the top traders and had in approximation $300 million of assets (De La Merced, 2008). Three floors were occupied by the business of Lipstick Building. The 17th floor belonging to Lipstick Building was office of Bernard Madoff that had in approximation of less than 24 of the staffs. It has been found that only a few of the employees were allowed to enter into that building. The floor was named as the hedge fund floor (Henriques & Berenson, 2008). The branch office of Madoff was also in London that was completely separate and different to that of the Madoff Securities employing 28 people and thus handled the...
Numerous news and articles reported the frauds that were committed by Bernard Madoff. One of such frauds has been the operation of $50 billion scheme, named Ponzi scheme, which was one of the major frauds that took place in the history. Madoff stated that it had been his fault that he paid the investors the money which was not at all real. It was found that approximately 50 percent of its customers invested in hedge funds, while other customers consisted of banks along with the wealthy customers. In the website of the company, it focused upon the “high ethical standards” of the firm (Glovin & Scheer, 2008).
The auditors of Madoff were accused by the Securities and Exchange Commission (SEC) of committing frauds in securities. They fallaciously demonstrated that they had conducted the audits legitimately while the fact was that they had not. It was stated by SEC that it was Friehling that helped in the smooth operation of the Madoff Ponzi plan. He falsely stated in the yearly audit reports that F&H ‘(David G. Friehling, CPA and his firm, Friehling & Horowitz, CPAs, P.C.)’, has checked the financial statements of BMIS according to the Generally Accepted Auditing Standards (GAAS). Further, the auditors of Madoff were accused of attaining ill-received benefits via returns from Madoff as well as BMIS. They were also accused of taking out the returns in the names of Friehling along with his members of the family from BMIS accounts (LaRocco, 2010). ...Show more

Summary

The main aim of the report “Madoff LLC Fraud” is to comprehend the types of frauds as committed by the Bernard Madoff, proposing numerous services to the banks. It will further try to find out how the frauds were identified and the control measures implied by the company. …
Madoff LLC Fraud essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Madoff LLC Fraud"
with a personal 20% discount.
Grab the best paper

Related Essays

Madoff LLC Fraud
Madoff Investment Securities LLC, has been performing its operation as one of the agents and/or brokers in the securities dealing segment. The company was initiated in the year 1960 in New York and has been rendering numerous services to the banks, financial institutions as well as broker and dealers (Bloomberg Businessweek, 2011).
12 pages (3000 words) Research Paper
CHRYSLER LLC Business failure
The following is a description of how organizational behavior theory, leadership, management and the group’s organizational structures contributed to the failure and how they would have been used to predict and explain the company’s failure.
3 pages (750 words) Research Paper
Madoff (famous Wall Street fraudster) reasearch paper
Madoff was a respected and renowned businessperson in the Wall Street, regarded as the founder of market making. He started his own firm 50 years ago, that was involved in the business of creating an avenue for buyers and sellers of stocks to interact while doing business.
5 pages (1250 words) Research Paper
An Evaluation of Unethical Behaviors
The case study of Bernie Madoff evaluated also gives an inner view of the negative aspects of the unethical behavior. The adherence to uncompromised business standards is highly important to maintain the integrity of the individuals and businesses. The notion of ethics is concerned with the moral values of the people, their principles and standards which influence their decisions.
9 pages (2250 words) Research Paper
Healthcare fraud
Some of the more modern evolved forms of healthcare fraud are seen to variously include various program abuse activities that might include the setting aside of some of the discounted drugs and thus making them unavailable to that happen to be in need, pill-mill schemes where prescriptions are falsely billed, organized criminal schemes and counterfeit drug activities (Busch, 2012).
8 pages (2000 words) Research Paper
Bernard Madoff Investment Securities Scandal
On June 29, 2009, Madoff was sentenced to 150 years of imprisonment by the court. This paper briefly explains Bernard Madoff’s investment securities scandal. “Bernard Madoff is the investment manager who defrauded investors of up to $50
5 pages (1250 words) Research Paper
Research for the Bernard Madoff Case
Investors did not bother much about the capital when they got huge returns. Madoff was succeeded in cheating the public and the authorities for around 30 years and no investigating agencies were able to find out the
3 pages (750 words) Research Paper
LLC manager and LLC member
When a LLC is managed by members, the members are involved in the process of making decisions and decisions are accepted and rejected
1 pages (250 words) Research Paper
Accounting Fraud
According to Ratley (2011), at least 5 percent of a typical organization’s revenue is lost to fraud. Ratley (2011) notes that when this figure is translated to the 2009
7 pages (1750 words) Research Paper
Auditing - Madoff Securities
After the exposure of this huge financial fraud , it was identified that the alleged fraud had been continuing for decades and has went unnoticed and undetected by the regulatory authorizes despite a
5 pages (1250 words) Research Paper
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation