World's biggest Ponzi scam by Bernard L. Madoff. More than 65 billion dollar scam, 150 years of jail and 4 deaths.

1. BERNIE
MADOFF
By Akshit
A Ponzi Scheme

2. OVERVIEW
ABOUT THE SCAM INVESTIGATION
2008
FINANCIAL CRISIS JAIL & DEATHS!
• Bernie Madoff
• Ponzi Scheme
• Payout Rules
• Sales strategy
• Slow down
• Confession
• 150 years Jail
• Suicides
• SEC
• Whistleblower

3. • Chairman of NASDAQ stock
exchange
• Chairman of National Securities
Clearing Corporation
• Chairman of International
Securities Clearing Corporation
• Member of Board of directors of
National Association of Securities
dealers
• Chairman of NASD small order
execution committee
• Vice Chairman of Securities
Industry Association(SIA) trading
committee
• Chairman of National Business
Conduct Committee
• Member of SIA federal
Regulation Committee
• Member of SEC Advisory
committee

4. PONZI SCHEME
“If It’s Too Good To Be True, It Probably is a Ponzi Scheme”

5. THE SCAM
1960
• Started Bernard L. Madoff Investment Securities LLP
• Simply deposited the money in 1 Bank Account at JPMorgan Chase
• JPMorgan Chase made $483 million from these deposits
• No real investment
• High returns (up to 20%) but consistent
• “The 5% payout rule” and “Reputation”
• ExclusiveClientele
• Targeted charities to avoid sudden withdrawals
“In today's regulatory environment, it's virtually impossible to violate rules.”

6. HARRY MARKOPOLOS
TheWhistleblower
• Filed complaint with Securities and Exchange
Commission in 2000 | IGNORED
• Another letter to SEC in 2005 stating
“Madoff Securities is the world's largest Ponzi
Scheme.” | SEC found “NO SIGNS OF FRAUD”
INVESTIGATION
"The lie was simply too large to fit into the agency's limited imagination,"

7. YEAR 2008
2008
• Global market deteriorated
• Redemptions > Investments
• Borrowed money to repay investors, but FAILED!
• On Dec. 10, 2008, Bernie confessed to his sons
• Mark and Andrew Madoff turned their father into the FBI
• Bernie owed US$65billion at the time of arrest
• Sentenced to 150 years in prison and forfeited $170 million in assets

8. DEATHS!
• William Foxton shot himself in a park, having lost all his life savings.
• Madoff's elder son, Mark Madoff committed suicide in 2010.
• Charles Murphy, a hedge fund executive with Fairfield Greenwich
Group that invested more than $7 billion with Madoff killed himself in 2017.

9. https://www.investopedia.com/terms/b/bernard-madoff.asp
https://en.wikipedia.org/wiki/Madoff_investment_scandal
https://www.bloomberg.com/news/articles/2018-12-11/the-bernie-madoff-ponzi-scheme-who-
s-where-now
https://www.businessinsider.in/finance/5-years-ago-bernie-madoff-was-sentenced-to-150-
years-in-prison-heres-how-his-scheme-worked/articleshow/37604176.cms
REFERENCES

10. Any Questions?