At a basic level, a Ponzi scheme is paying off existing investors with monies collected from new investors. This type of fraud is difficult to sustain because of the fundamentally rising number of new investors and monies that are required to ensure the promised returns in order to meet expectations. Bernie Madoff, former chairman of the NASDAQ stock exchange, ran the largest Ponzi scheme in history managing a total of $64.8 worth of investments. Based on the New York Times best-seller book No One Would Listen by Harry Markopolos, Chasing Madoff chronicles the lengths that both Markopolos and the other whistleblowers went to in order to expose this massive fraud.
After discovering the Madoff scheme, Markopolos chronicles the path he took to expose the fraud. Over the course of almost a decade, Markopolos went to the U.S. Securities and Exchange Commission (SEC) and the media in an attempt to disclose the fraud but they responded with little action. It wasn’t until the financial collapse of 2008 that brought down Madoff as his investors began trying to pull money out of his fund. What was surprising in this story is the level of fear that Markopolos lived with during this period based on his realization that those at the highest levels of power had invested with Madoff. It became clear, however, that in addition to Madoff, there were a host of individuals and feeder funds that propped up this fraud and allowed it to continue for as long as it did. Facilitating this fraud was also an incompetent SEC and media.
Driving this fascinating story of principles and determination are interviews with the Madoff whistleblowers which are expertly and seamlessly edited together along with congressional testimony with SEC employees, comments from Madoff investors, and archival footage of Madoff himself. The pace and production along with the story itself will keep the attention of any viewer. Given the content, this film is appropriate for high school and college students along with the general public.
Chasing Madoff is highly recommended for any academic film collection supporting business and finance programs especially those with a focus on regulatory compliance and ethics. Highly Recommended.
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