Question

Understanding the Bernie Madoff case – read the notes above and Google the Madoff case and a) explain the protections that corporations have and 2) why in this case were the courts able to go after his personal assets?

Answer 1

Asper research organisations have various protections from regulatory approval to auditors who despite knowing fact of misrepresenting numbers on balance sheet remain muted. Many times organisational heads sit out on varuous legal and compliance committees and hence get saved fron corporate scandal . Also they can choose their own auditor and committes for ethics which give biased results.

The court freezed his personal assets because of ponzi scheme which he owned and looted investors noney using his own account. Also since he served as Nasdaq Director he is liable for personal assets being held incase of misconduct or fraud where entire fraud had been conspired solely by him.

The fraud he practised misrepresented incomes and fabricated and extrapolated profits to drive up shareholders value and market Capitalization and hence mark maximum profits.