Madoff Questions Sara Santillanes

1. How does a Ponzi scheme work?

The Ponzi people give old investors money from new investors in a fake return while taking a brokerage fee as their cut.

2. How do you think Bernie Madoff was able to keep his scheme going for so long?

People liked and trusted him. Working with him was considered an honor. He hid behind his legitimate brokerage. Madoff served as a non-executive chairman of nasdaq as well as participating on many panels for regulations. He depended on being an insider to secure more wealthy investors. He was an "in" guy and depended on being an insider to keep perpetuating the lie.

3. What type of person is a “Ponzi Person”

They were magnetic and charismatic. They had to look confident, they know the system but not of they system which gives them an outsider's morals but an insider's knowledge. They are virtually sociopathic.

4. Why do you think you the SEC (securities and exchange commission) did nothing after warnings about him?

Marcopolis was a whistle blower. It didn't help that Ma doff was on SEC committees. There was also lack of resources & a change in priorities allowed for less regulations. Most people wanted to ignore the warning signs because of the general euphoria of the times led to a security and something to hide behind.

5. Why do you think he did it?

Who doesn't want to live forever in history textbooks and go down in history ? Who doesn't want to live rich and powerful. To Madoff these things were worth the risk.

Born on April 29, 1938 in Queens, New York

He wore a size 8 shoe

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