Bernie
Madoff
Scandal
Presented by: Group B
Doston ADIKHAMOV
Hamidillo ABDULLAYEV
Olloberdi TURSUNBOYEV
TABLE OF CONTENTS
1
3
5
Who is Bernie
Madoff?
The man who stole $65
billion in decades
Bernard L. Madoff
LLC
The biggest fraud in the
history of finance and trade
The man who blew the
whistle
Simple maths and just 4
hours to prove
2
4
6
What is a Ponzi
Scheme?
Robbing Peter to pay Paul!?
How did he go so
long?
Never judge the book by its
cover!
Be CAREFUL!
Invest ONLY when you are truly
sure about your SECURITY
1
Who is Bernie Madoff?
Was born on April 29, 1938, Queens, New York
Father: Ralph Plumber
Mother: Silvia Housewife (Financier)
Married in 1959
Graduated from Hofstra University in Long Island
Started Bernard L. Madoff Investment Security, LLC
with $5,000 earning and $50,000 loan
Finally he managed to stole $65 billons in around
50 years, and jailed for 150 years in 2009
What is a Ponzi Scheme?
Simple and easy, robbing Peter to pay Paul, Jane or others.
Ponzi schemes are named after Charles
Ponzi. In the 1920s, Ponzi promised
investors a 50% return within a few months
A Ponzi scheme is an investment fraud
that pays existing investors with funds
collected from new investors.
Bernard L. Madoff Investment Securities, LLC
Est. in 1960
Bernie founded it and
was its chairman until
he was arrested in 2008
Main Purpose
Company looked good
from outside, with trade,
solid market maker
Reality
Used the company to get
more new investors so
that they can pay early
investors
How did he manage to go so long?
Ironic Clients
High Return in few years
Low loss or no loss percentage
Well Spoken Attitude
“Today’s regulatory envoirenment, it’s virtually
impossible to violate rules. It is impossible for
you for the violation undetected.”
Bernie Madoff
A Whistleblower – Harry
Markopolos
is an American former securities industry executive and a
forensic accounting and financial fraud investigator.
Alerted SEC (U.S. Securities and Exchange Commission)
several times about Madoff’s illegal business
Finally in December 2008, FBI started a case against
Madoff
Harry just spent about 5 minutes to figure out that it is a
fraud and took another almost 4 hours of mathematical
modeling to prove that it was a fraud
Always BE CAREFUL When Investing
Security
How secure it
will be when you
invest
Company
Portfolio
Review Companys
history of trade
Plan
Strategy
Decide to which
stocks you want
to invest
Ignore the
noise
Do’nt make
decisions based
on today’s market
noise
THANKS!
Does anyone have any questions?
accmanagementteam@gmail.com
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Have a great day!
Tongmyong University 2022