Finally, Madoff himself revealed the truth to his sons and they reported this case to the court. Bernard Madoff Investment Securities Scandal involves many ethical issues. Moreover, many stakeholders were also involved in this case. This paper briefly explains some facts, ethical issues and stakeholders involved in Bernard Madoff’s investment securities scandal case.
“Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its chairman until his arrest on December 11, 2008” (Bernie Madoff’s Investment Scandal Exposed, 2010). Madoff was able to command the respect of the investors because of his huge experiences in Wall Street in different positions. When he offered the customers huge return even on short term investments through his Ponzi scheme, nobody was in any sort of doubt about the fraudulent nature of the scheme. Investors thought that Madoff has got some magical power to multiply their investments because of his huge experiences in Wall Street. Vernon Silver (2009) has mentioned that the returns that Mr. Madoff’s firm provided were consistently good over the years (Silver, 2009). “Concerns about Madoff’s business surfaced as early as 1999, when financial analyst-whistleblower Harry Markopolos informed the U.S. Securities and Exchange Commission (SEC) that he believed it was legally and mathematically impossible to achieve the gains Madoff claimed to deliver” (What Has Bernard Madoff Investment Securities Done to Investment Securities?, 2010). These concerns expressed by the financial experts forced Madoff to confess his guilt to his sons in December 2008 which they reported to the court. Even though Madoff revealed that he has started his fraudulent activities in the 1990’s, investigating agencies believe that he has started such activities as early as the eighties itself. “Madoff told the agents that it was his entire fault, and that he "paid investors with money that