Answer :
Bernie Madoff was a former stockbroker, investment advisor, and financier who orchestrated one of the largest financial frauds in history, often referred to as a Ponzi scheme. Here's a summary of his activities and the impact he had:
Who: Bernard 'Bernie' Madoff was a highly influential figure on Wall Street. He was once the chairman of NASDAQ and well-respected in the financial community.
What: Madoff ran a Ponzi scheme, which is a form of fraud where returns to initial investors are paid using the capital from newer investors, rather than from profit earned by the operation of a legitimate business.
When: His fraudulent activities lasted for several decades, mainly from the late 1980s up until he was arrested in December 2008.
Where: Madoff's financial firm operated in New York City, on Wall Street. His operations drew clients from around the world, including individuals, charities, and major banks.
Why: Madoff's scheme was driven by the desire to create an illusion of consistent returns, attracting more funds to manage. This created the appearance of a successful investment fund, luring in countless victims.
How: Madoff promised and reported high and consistent returns, sometimes achieving 'returns' regardless of market downturns. During his trial, it was revealed that he never actually made any genuine investments with his clients' money. Instead, he used new investment funds to pay returns to older investors, sustaining the illusion of profitability.
The scheme unravelled during the financial crisis of 2008 when many investors wanted to withdraw their investments simultaneously. Madoff couldn't keep up with the withdrawal demands, leading to his eventual arrest and exposure of the scheme.
Madoff was sentenced to 150 years in prison in 2009 after pleading guilty to 11 federal felonies. His actions caused massive financial losses for thousands of clients, undermining trust in the financial markets.
