Medoff

Bernard Lawrence "Bernie" Madoff

Business Law I – LEG 100

Tesfa Seyoum

Instructor:- Sheritta woodruff

February, 2011

1.

Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business.

In March 2009, Madoff appealed responsible to 11 federal crimes and confessed to turning his wealth management business into a massive Ponzi scheme that cheated thousands of investors of billions of dollars. Madoff said he started the Ponzi plan in the early 1990s. However, federal investigators deem the fraud began as early as the 1980s, and that the speculation process may never have been lawful.

Investigators have found others were occupied in the scheme. The U.S. Securities and Exchange Commission (SEC) has also come under fire for not examining Madoff more systematically; inquiries about his firm had been lifted as early as 1999. Some of the allegations are as follows.

* Monopolizing trade – this is unlawful according to Sherman Antitrust Act (1890).

* Having unfair performance and misleading acts in or affecting commerce which is prohibited by Federal Trade Commission Act (1914).

* Fraudulent financial accounting is also unlawful according to Sarbanes-Oxley Act of 2002.

2. Name three types of parties who were impacted by the actions of Mr. Madoff and describe how they were impacted.

SEC: The SEC examined Madoff in 1999 and 2000 about concerns that the firm was hiding its customers' orders from other traders, for which Madoff then took remedial actions. SEC was harshly criticized for not investigating properly and not being able to detect the wrong actions of Madoff.

Madoff: U.S. District Judge Denny Chin verdict Madoff to 150 years in prison. Chin said he had not received any mitigating letters from friends or family testifying to Madoff's good deeds, describing that...