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Describe the essential elements of the Bernie Madoff fraud. What made it so effective? Is this fraud primarily a case of asset misappropriation or fraudulent financial reporting? Explain the reason for your answer.

Reference the Scam of the Century?: Bernie Madoff and the $50 Billion Heist video. A Ponzi scheme occurs when a fraudster uses deposits of new investors to payoff previous investors; no real investing is happening. A Ponzi scheme will collapse if new clients don’t invest, or their investments are too small to fund a decent […]

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