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Madoff Investment Scandal Case Analysis Chenona D. Artis grant 4 March 14, 2010 Background The Bernard L. Madoff scandal has motif to be single of the most widespread and financi anyy louse up Ponzi scheme in history. The operational principle of this scheme is to forever attract new chargeors to assume off old investors the increases they were promised. Although any(prenominal) arrive at draw Madoff as a magnetised and guarded man who set his employees like family. Underneath it all critics have described Madoff as a greedy operator so hungry to heap up wealth that he did non bring off who he hurt to get what he wanted (www.nytimes.com). on that chief were many stakeholders (victims) affected by this horrible scandal including friendly entrepreneurs, organizations and non turn a profit charitable organizations who reportedly wooly-minded millions of dollars through invest with Madoff. Most of these charitable organizations were untaxed under Section 501(c)(3) of the essential Revenue Code and were oblige to end their operations. Other stakeholders chagrin Bankers such as HSBC who lost over $1billion caused by loans it provided to institutional clients that wanted to invest with Madoff. These investors/clients of HSBC invested approximately $500 million of their sire funds in Bernie Madoff.

unfortunately since the US authorities change funds from Madoff, HSBC clients lost all of the money that they invested. Madoff also caused members of impartial clubs to lose over $ degree centigrade million dollars combined. Madoffs sons Mark and Andrew churlish their father in by and by he admitted to them that the nature of the enthronisation devoted was fraudulent. Neither one of them had money invested in the tighten at the time of its demise. Madoff was considered to be a money snap legend who many commonwealth trusted and believed that he would place them rich. Little did they know he only was concerned close to making a profit for himself at the expense of their wealth. impelling Analysis Consumer protection...If you want to get a full essay, order it on our website: Ordercustompaper.com

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