Bernard Madoff

Executive Summary

        Bernard Madoff, a businessman, opened his firm in 1960. His firm was about investments and that was what he used in order to do his schemes. In order for the people to believe in his business, he used the new investments which served as the dividends for the old investors. He got over $65 billion by fooling the people who invested in his business. Each business ventures has an expected profit, and his business exceeded it which made the people curious about his business. Because of it, investigation took place for his business. He also wasn’t able to give dividends to the investors of his firm. These situations led him to being arrested on December 2008. He was said to be guilty to the biggest fraud that ever happened so it was also called the biggest fraud of the century. Because of this, he was sentenced to 150 years of imprisonment.

Introduction

        In this case, the main problem was the fraud done by Bernard Madoff. He may truly have an investing business but then it wasn’t legal. He fooled his investors by giving them actual dividends but then its source was not legit. His investors was fooled that what he was doing in his business was legal. They probably thought that the dividends they got came from the profit of a business. It was late when they knew that the dividends they were receiving were just the investments of the new investors.

ACA

        For the alternative course of actions, I think that the best thing to do is that people should first be knowledgeable about the business where they are going to invest. Before investing, they should know what investing is all about. They should also know if the business where they are going to invest is legal. Aside from those, they should also see how the business is being operated. The strength of this ACA is that the investors would be very informed to what they are about to do. Being knowledgeable before investing would make you have no regret if you will invest since you know everything about the business. Its weakness is that not all people have the ability to be knowledgeable about. Some doesn’t even know what investing in stock markets is all about. The opportunity in this ACA is that even you are not yet that willing to invest, you will still have knowledge about the stock market and the business. The threat is that people might spend money for seminars regarding stock markets and the business but in the end, they would still not invest.