Revista de Direito Setorial e Regulatório (Oct 2024)
Compreendendo a Fraude de Madoff: Uma Visão Criminológica e Regulatória
Abstract
[Purpose] This study analyzed the case of Bernard Madoff's Ponzi scheme, investigating the causes, implications and regulatory failures that allowed this fraud to be perpetuated for so long [Methodology/approach/design] We used a multidisciplinary approach that involved reviewing the literature, analyzing legal documents, regulatory reports and related academic research. We explored the structure of Madoff's Ponzi scheme, the factors that made it sustainable and the deficiencies in the regulatory system that allowed it to operate. [Findings] The study revealed that Bernard Madoff created one of the largest Ponzi schemes in history, causing massive losses for investors. Regulatory failures, including ineffective SEC oversight, lack of coordination between regulatory agencies and conflicts of interest in audits, played a crucial role in perpetuating the fraud. Madoff's 150-year sentence and asset forfeiture were part of the legal measures taken to deal with the consequences of the fraud. [Practical implications] The practical implications of this study highlight the importance of regulatory reforms to strengthen financial and securities supervision. In addition, it highlights the need to protect whistleblowers and promote a favorable environment for revealing wrongdoing in the financial sector in order to prevent future similar cases. [Originality/value] This article fills a gap in the study of financial regulation by providing a comprehensive analysis of the Madoff case and its implications. Its relevance lies in the lesson it offers about the devastating consequences of financial fraud and the measures needed to protect investors and improve regulatory oversight.
