Like most CPA’s I know, I have been following with great interest the story of Bernard Madoff and his huge Ponzi scheme. I could write a book about what I find fascinating regarding this story. Things like: defrauding a group of people largely from his own Jewish heritage (and one which has historically been protective of each other); lack of due diligence by some supposedly sophisticated investors; complete breakdown by the SEC for over a decade; why no one questioned his use of a very tiny CPA firm to audit his books when that very firm told the AICPA that it does not perform audits; how a fraud could grow to be $50 billion…But what is really interesting is that he is not in jail. As of now, the federal judge has decided to let him stay in his $7 million penthouse while he awaits hearings, trails…. How can that be? This man admitted to pulling off a $50 billion dollar fraud (that is many zeros behind the number 50) and yet he is allowed to continue living in luxury. Why not make an example of him? This, even after the fact that over the holidays he sent out $1 million in jewelry to family and friends which clearly shows he is violating his bail conditions of trying to hide assets. I would love to hear what you think about Bernie.
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