Bernie Madoff: America’s biggest swindler
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Madoff’s embezzlement crimes --- Steve Sorensen
Bernard “Bernie” Madoff was once known as one of the most influential personalities on Wall Street. His lavish lifestyle was beyond compare, and his success resonated throughout the country. However, it was later discovered that everything he had built came from elaborate embezzlement from a notorious Ponzi scheme he created. He embezzled over a hundred billion dollars and is currently serving 150 years in prison. This is the story of America’s biggest swindler. Steve Sorensen embezzlement.
Madoff began his Ponzi scheme by creating a false portfolio that matched the returns of the S&P500 to actively prevent him from paying his investors too much but still appeal to new investors. He did what he could to keep a low profile while targeting an elite set of investors to stay away from the sights of the SEC. Steve Sorensen embezzlement.
What made Madoff’s scheme convincing and long-lasting was the relatively low returns promised to its investors. Typical Ponzi schemes promise exorbitantly high returns such as 50% in a month or 100% of investments in six weeks. This allowed Madoff to continue his scam for years. He also updated his paperwork consistently to appear legitimate. Steve Sorensen embezzlement.
Madoff told his investors that they can withdraw their money at any point of the venture, which made them less suspicious about the ordeal. It was only when Madoff made headway as an entrepreneur did analysts began to suspect. When they tried to replicate Madoff’s performance, the numbers didn’t add up. This was brought up to the SEC, which at first ignored these claims. Steve Sorensen embezzlement.
His downfall would begin in 2008 when Madoff was borrowing money to pay off investors who were trying to liquidate their assets. Unable to keep up with the scam any longer, Madoff confessed to his sons, who were also partners at his firm Bernard Madoff Securities. His sons eventually turned Madoff over the FBI, ending the scheme for good. Steve Sorensen embezzlement.