Bernie Madoff duped a group of people in American society who were believed to be prudent at least, by a majority of the nation’s populace. In 2009, Erin Arvedlund published a book titled “Too good to be true: The rise and fall of Bernie Madoff”. It is a thrilling read especially for a student looking to build a career in financial management. Analyzing the book enables one to take heed of major points as well as offer an opportunity to understand the basis for how a massive fraud scheme thrived in a regulated operating environment.
Erin Arvedlund’s book is one that details how easily the American financial system was foolishly duped into enabling one man and his associates to live large. Bernie Madoff ran business that worked on a unbelievably simple premise. Arvedlund (2009) work on unraveling the massive financial fiasco is based on years of professional and meticulous research. As a financial journalist, she was able to identify significant red flags that pointed a finger to the fact that Madoff’s billion dollar enterprises constituted the worst case of financial fraud in the nation’s history.
Through deception, Madoff started off by endearing to his wealthy father in law to encourage family members as well as close friends to back his daughter’s husband stock options business by investing there (Arvedlund, 2009). His entire organizational successes were totally fictitious since the billionaire operated a Ponzi scheme. All this happened under the noses of the Securities and Exchange Commission (SEC). Its primary purpose is to protect the American investor against unscrupulous individuals and entities operating in the vast economy (Arvedlund, 2009). This implies that it literally failed in its mandate and function to ensure that the country’s investors were safe from a deceptive individual such as Bernie Madoff.
The fictitious payments paid out to investors registered with Bernie Madoff’s infamous Ponzi scheme la