Madoff Questions creator: noam nagar

Question 1:

A Ponzi Scheme, named after Charles Ponzi, is a strategy that con artists use to steal money from people. In a Ponzi Scheme, the con artist takes investment money from one person and lends it to another without any real investment.

" The rob Peter to pay Paul principle "

Question 2:

Madoff was able to keep it going because more new investors kept coming in, and while he does need to pay the old investors that wanted their money back, he got more money than he needed to pay them. He was able to always attract enough new investors, so he always had the money to pay back.

Ponzi Scheme Diagram

Question 3:

According to the video, people who are Ponzi Schemers usually have a very friendly and opening personality. Very inviting and charming. This is because if you are friendly and nice, you are able to attract more and more people since they can trust you.

Madoff even came to people's funerals and weddings. If he was invited, he would be there. That should tell you what type of person he seemed like he was. (Indirectly quoted from "Scamming of America")

Question 4:

The SEC was blind against Madoff because Madoff had involvement in the SEC. The SEC just did not see a threat when they were receiving complaints about him because they were already thinking he's a good person and that he will never do such a thing.

Question 5:

I think Madoff did the crime because he wanted money. He found a way to get money, and did not see the bad effects of it afterwards while not thinking about what he is causing to other people. He simply got too greedy and found a way to satisfy the greed.

Extra Facts:

1.) Only a fraction of the people scammed by Madoff got their money back.

2.) No one still knows when Madoff's scheme started.

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