Answer the following questions about Bernie Madoff
1. What are some of the characteristics of a Ponzi scheme? (hint: look at SECs website)
2. What was the condition Mr. Madoff imposed on people marketing his investments? Why do you think he did this?
3. When investors received their statements, what responsibility did they have to review and understand them? What signs could they have picked up on to alert them to potential problems?
4. Starting in 2001, whistleblower Harry Markopolos alerted the SEC three times to the likelihood that Bernard Madoff was running a Ponzi scheme. Why do you think the SEC didnt act on this information until 2006?
5. What was the final straw that uncovered the Madoff Ponzi scheme?
6. Ultimately, who do you think was responsible for the losses incurred by investors?
7. Do you believe Mark and Andrew Madoff didnt know about their fathers Ponzi scheme prior to their December 10, 2008 discussion at Bernie Madoffs apartment? Show specific evidence from the case study supporting your claim.