Essay --

Assignment 1 EthicsBernie L. Madoff investment Securities LLP was part of what is considered to be one of the largest financial frauds in U.S history. The Wall passageway investment firm was used as an elaborate Ponzi Scheme that extorted upwards of $65 billion from unsuspecting investors. The Ponzi scheme is a fraudulent investment appendage that pays earnings to older investors using the money generated from newer investors. The Ponzi scheme was perpetrated by fo infra Bernie Madoff and was carried out for a number of years until 2008 when he was finally convicted.Bernie L Madoff Investment Securities LLP was founded in 1960 by Chairman Bernie Madoff and was one of the top market-maker businesses primarily serving as the middleman between buyers and sellers of shares. Bernie Madoff first started his firm as a centime stock trader using the $5,000 he saved up from his job as a lifeguard and sprinkler installer. As time went on he was subject to build up his firm with the help o f his father-in-law, Saul Alpern who referred him to a large circle of friends and families which further helped expand his business (Biography.com). The firm eventually became so in(predicate) that by the 1980s, the firm handled up to 5% of the traffic volume on the New York Stock Exchange. The firm also helped develop the National Association for Securities Dealers machine-controlled Quotations (NASDAQ), a computer technology information platform which the firm used to broadcast stock quotes. In the 1990s Bernie Madoff was eventually named chairman of NASDAQ (DeGrace, 2011). Alongside Bernie Madoff was his associate Peter Madoff who was the firms chief compliance officer and senior managing director. Bernie also hired his two sons Mark and Andrew Madoff at his firm.... .... According to the nytimes.com, it is required under the SOX that brokerage firms such as Madoff Securities are required to be audited by firms registered with the Public Company Accounting Board. However, th e S.E.C issued a rule to waive that requirement for in camera held brokerage firms. This again allowed Friehling & Horowitz who werent registered with the board to continue on doing the audits for Madoff Securities. (Norris, 2009)Its obvious that Bernie Madoff was highly respected among his peers for his knowledge and experience in stock trading and he used that leverage to manipulate hundreds of investors. His returns despite seeming suspicious left his investors wanting more. Theres no doubt greed was the driveway force behind Madoffs unethical behaviour but it could also be said greed was also the reason Madoff was able to get away(predicate) with it for so long.