Madoff Questions By Ethan harrison

"That man just MADOFF with my money!"

1. A ponzi scheme is actually pretty simple. A person gets someone to invest in them, but instead of using the money they way that they promised, they just use the money from a bigger investor to pay them the amount that they agreed on. It is a way of using the bigger investors to pay the smaller investors, while pocketing the money, without drawing any major amounts of attention to the possibility of it being a con.

2. Madoff was a likable person, so little to no people considered the fact that it could be the work of a con artist. Madoff made record sheets showing the buying and selling prices of stocks, so to the investors, it seemed that he was just extremely good at what he did. Most people don't want to think about anything being wrong when they are making as much money as they were. Madoff was confident, he was trustworthy (or so he seemed), and he was making people money, so there was no need for people to consider or look into the possibility of it being a scam.

3. A "Ponzi person" is someone that everyone seems to like. People in the video described Madoff as charismatic, likable, and trustworthy. This perfectly describes a ponzi person. It's the type of person that you are drawn to when you walk in the room. Their confidence, friendliness, and charisma makes them seem like the kind of person you could invest in almost immediately.

4. I think that they didn't do anything because they didn't think it was true. They looked into the possibility of front running, and confirmed that he wasn't doing it, so they didn't even look into the possibility of there being another type of scam taking place. Madoff didn't seem like the type of person to do that, and in the first investigation that they did, they came up with no evidence of anything illegal taking place.

5. I think, initially, he was trying to be a legitimate businessman, but as he decided to steal a little bit of money from a couple of people, it turned into taking a little more money from a few more people, and a little more and more, until it was millions, and then billions. In the end, he just lost control, and he couldn't stop. I think he had good intentions originally, but he ended up going down a path he never meant to go down.

Interesting facts: Madoff is currently imprisoned at the Federal Correctional Institution Butner Medium. He started with only 5,000 dollars from working as a lifeguard. He had many high-profile victims of his scheme like Steven Spielberg and Kevin Bacon. He went from controlling billions of dollars in investments in 2008, to making 40 dollars a month in prison labor.

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