Answer to Question #239420 in Management for Towani

Question

Brief background of the madoff investment scandal

Answer 1

Background of the Madoff Investment Scandal

           The Madoff Investment Scandal was a major case in 2008. The investment was associated with stock and securities deception. Madoff, the investment owner, was set up to the authorities by his sons upon discovering his fraud actions. However, he did not deny the allegations. In March, the year after being arrested, he pleaded guilty. Operating a private Ponzi scheme was among the 11 federal offenses Madoff pleaded guilty to (Hardy, Bell & Allan, 2020). The Ponzi scheme involved swindling finances where initial investors receive payment using money collected from later investors instead of receiving direct payment from income gathered from the actual investment.

Reference

Hardy, J., Bell, P., & Allan, D. (2020). A crime script analysis of the Madoff Investment Scheme. Crime Prevention and Community Safety, 22(1), 68-97.