Subject: Business    / Finance   

The objective of this assignment is to consider the essential elements of a Ponzi scheme, understand how and why the Madoff scheme was perpetuated and lasted so long, and how to avoid becoming a victim of this type of fraud.

This assignment should be 700 words in length, in APA format, and include the following:

1. A description and history of Ponzi schemes.

2. The essential elements of a Ponzi scheme.

3. Background on Madoff and his scheme.

4. The reasons Madoff’s fraud lasted so long.

5. The SEC’s actions and role in the case.

6. Red flag indicators of a Ponzi scheme.

7. Actions to avoid becoming a Ponzi scheme victim.

To consider this issue fully, review “The Madoff Affair” at http://www.financedocumentaries.com/2011/06/madoff-affair.html and use http://www.sec.gov/answers/ponzi.htm as a resource.