1. How does a Ponzi scheme work?
someone would invest into someone but who their investing into would be linked to madoff and lost all of their savings/money the old people who “invested would be payed off with all the new people's money who “invested" as well
2. why do you think Bernie Madoff was able to keep his scheme going for so long? (Why did they not catch on?)
he would tell people he would double their money in 90 days. you need more people to keep it going and be able to pay it off. the people were never investing they were just paying off the old people and the money would go directly into Madoff's account
3. What type of person is a “Ponzi Person”(characteristics, personality)
he was very smart and was trusted by many people. he grew up humble only being exposed to wealth not part of it. he was a great person in the beginning but people then realized he was just a fraud.
4. Why do you think you the SEC did nothing after warnings about him?
madoff was on the SEC board and his family members were on other companies and they just didn't believe he'd do something this drastic.
5. Why do you think he did it?
the money. if you're always just depositing your investors money it adds up to the millions.