Intelligence Briefing ( 15 or more Power Point Slides)
Student 2018
SampleIntelligenceBriefing.pptxWhite collar crime; the Bernard Madoff Scandal
Student: Christian Castillo
Week2
Professor: Donald Rebovich
3/28/2018
Individual Group.
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Executive Summary
White collar crime by Bernard Madoff
Impact of the scandal
Nature and extend
Preventive measures
The intelligence briefing highlights the white collar crime by Bernard Madoff who stole billions of dollars of investments, savings and retirement funds from businesses, non-profit foundations and individuals. The scope of this scam resulted in internal and external victims. The company was manipulating its accounting to collect additional loans from a bank which was devastating after the company went broke (Gottschalk, 2013). The impact of the scandal is highlighted including the amount recovered to date. Different measures for curbing white collar crimes are also highlighted.
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Characteristics of White Collar Victims
Prone to financial Loss
Unaware of the malpractices
Most of the victims of white collar crimes are employees, employers, banks, tax authorities, customers and shareholders. They are prone to extended financial loss as most of them might be unaware of the subtle accounting malpractices (Gottschalk, 2013). In the aftermath of the Bernard Madoff, most of the victims including businesses and individuals suffered significant financial losses.
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Characteristics of White Collar Victims (cont.)
Public Humiliation
News Coverage
The victims are constantly reminded about this scandal by media coverage which results in public humiliation. During the Bernard Madoff scandal, the issues was covered in the television, newspapers, internet and magazines which was a source of humiliation to the victims (Gottschalk, 2013).
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Nature of The Bernard Madoff Scandal
150 years prison sentence
$50 billion loss
Biggest fraud
Bernard Madoff Scandal was sentenced to 150 years in prison after being found guilty for running a multi-billion Ponzi scheme. The Ponzi scheme resulted in approximately $50 billion loss for the investors (Berman & Knight, 2010). This was the biggest fraud to be committed in the history of Wall Street. While he controlled billions of dollars in 2008, he earned $40 per month in 2013 after his imprisonment.
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Nature of The Bernard Madoff Scandal (cont.)
High Profile Victims
Felony charges
Money laundering
Perjury
Fraud
The scheme had high profile victims including actors Kyra Sedgwick and Kevin Bacon, and director Steven Spielberg. Madoff pleaded guilty to felony charges including perjury, money laundering, fraud and false fillings with the SEC (Berman & Knight, 2010). A total of $199 million lawsuit was filed against his sons, his brother and niece all of whom worked at the firm.
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Extent of The Bernard Madoff Scandal
Over 24,000 victims
The scandal affected over 24,000 victims who had invested their finances with the Ponzi scheme. This included businesses, individuals and not-for-profit foundations all of whom are being paid out by the government (Berman & Knight, 2010).
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Extent of The Bernard Madoff Scandal (cont.)
Repaying the victims
$11.1 billion paid by 2016
In 2012, a total of $3.6 billion was returned to the investors. In 2014, a total $9.8 billion was recovered after Trustee Irving Picard announced acquisition of additional funds to pay the victims. By 2016, $11.1 billion out of the total $17.5 billion worth of investments had been recovered by the federal government.
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Effects of The Bernard Madoff Scandal
Jeopardized safety, health and well-being
Mark Madoff commits suicide
Humiliation
The corporate misconduct jeopardized the safety, health and well-being of the citizens who had enrolled on the investment scheme. A large number of people suffered financial harm due to the fraudulent financial reporting that led to the collapse of the firm (Gottschalk, 2013). Besides, Madoff son, Mark Madoff, committed suicide due to the humiliating nature of the scandal after it was televised. Evidently, white collar crimes have devastating effects on the lives of its victims.
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Effects of The Bernard Madoff Scandal (cont.)
Loss of investments
Loss of jobs
Inability to pay loans.
White collar crimes have a devastating ripple effects as most of the employers in the organization lost their jobs. Most individuals were out of job after the company collapsed. The situation was devastating to investors who were unable to pay out their loans. The savings accounts of innocent employees and businesses were ripped out. The true impact of the crime could not be ascertained as some information could not be easily retrieved.
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Preventing White Collar Crime
Strong Internal Controls
Managerial Help
Employee training
The preventive measures to be considered include, strong internal controls, training and help from management. Notably, weak internal controls have been cited as the major contributing factor for this crimes (Surrette, 2016). Additionally, adequate training will provide employers the ability to recognize fraud promptly. The management ought to be involved in the fight against white collar crimes as they can provide vital information that will be a breakthrough to the investigating agencies.
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References
Berman, K & Knight, J. (2010). What Did Bernard Madoff Do? Harvard Business Review.
Gottschalk, P. (2013). Victims Of White-collar Crime.
Surrette, J. (2016). The Effects Of White Collar Crime On Business Today. Accessed March 27, 2018 From Https://Www.Kahnlitwin.Com/Blogs/Business-blog/The-effects-of- white-collar-crime-on-business-today
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