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Questions 1. Is there anything wrong in terms of justice with the Ponzi scheme? What might have been the intention of Madoff in his strategy? Is there any circumstances in Madoffs behavior that makes this particularly reprehensible? 2. What type of responsibility (commission, omission, induction or cooperation) can be ascribed to Bernard Madoff, Ruth Madoff, Peter Madoff, Charles Weiner, the Madoff sons and David Friehling? Why might the regulators have failed to detect the fraud despite the many alerts, especially that from Markopolos?

@ @ MORAL JUDGEMENT IN DECISION-MAKING Key Terms Conflicting duties Conflicting Evaluation Conscientious objection Decision-making process Evaluation of alternatives Lesser evil Moral certainty Moral conscience Moral judgement Moral motivation Moral rectitude Moral sensibility Principle of Double Effect Righteousness (of moral conscience) Solving ethical dilemmas Stakeholder analysis Triple Font of Morality Introductory Case Bernard L. Madoff-Managing Other People's Money? Bernard L. Madoff, after having worked as a lifeguard and sprinkler installer, ved US$5.000 and invested it in founding his own firm, Bernard L. Madoff Investment Securities (BMIS) LLC in 1960. Initially, his business grew with the assistance of his father-in-law, who referred a circle of friends and their families. The company became famous for its reliable annual returns of around 10-15 per cent. BMIS pioneered electronic trading. All of this helped Madoff become one of the largest marker makers of Wall Street. Investing in BMIS had an air of ochsivity. Madoff did not accept every investor who came to him. He used to reject some clients, arguing the quota was already filled up. Being accepted was an honour, a sign of power, wealth and pedigree. That made his fund even more prestigious. His personal touch was part of the marketing strategy. Madoff's wife, Ruth, who had a background in finance, had worked in the company since its inception. She also began the Madoff Charitable Foun- dation. His brother Peter joined them in the 1970s. Once grown. Madoff sons worked in the trading section, along with his nephew. Charles Weinet. Madoff's successful career made him one of the most respected Wall Street businessmen. In 1990, he became chair of the NASDAQ Stock anchange. He was also head of the board of directors of the Sy Syms School of Business at Yeshiva University, Bemand and Ruth were prominent philanthropists. They served on boards of non-profit institutions and donated US$6 million to lymphoma tocarch after his son Andrew was diagnosed with the disease in 2003. The couple was active in the Jewish social circuit in New York City and Florida Madafi capitalized on his personal touch, winning many of his cli- enes from the affluent groups The Madoff family was desdy linked to regulatory organizations. Her rund and Peter had been part of the board of directors of the Securities Industry and Financial Markets Association (SIFMA), which was the main industry organization. Peter's daughter Shana was the on Executive Committee of Compliance and Local Division. She married Eric Swanson compliance oficial of the Securities and Exchange Commission (SECH which the main US markets watchday