1) Discuss any two (2) unethical behavior done by Bernie Madoff

Lacked honesty.
Bernie Madoff is a biggest financial scam. He was caught wind that hedge fund
manager of one of their partners was consistently retaining a 1 to 2 percent profit per
month. Madoff’s return was too consistent when market went up, Madoff made a
profit. When market went down, he still made a profit. Madoff returns weren’t real.
The return to be unfazed by the market conditions. There was a little to no fluctuation
despite the market movements. He provided investors with solid and steady returns
even in down markets. He claimed that his strategies were too difficult for investor to
understand.

Running business that there was no fairness and lacking integrity.

Bernie Madoff also running the largest Ponzi scheme in which he would take funds
from new investors and pay dividend and redemption request to older investor,
pocketing a large portion for himself. To keep the scam going, the masterminds
behind the plan convince numerous victims that they’re investing in a legitimate fund
that promises great returns. Madoff set up his portfolios to look like he was matching
the returns of the S&P 500. This strategy prevented him from needing to pay too
much to existing investors, but it still made his purported holdings appeal to new
targets. And he remained under the radar by doing everything he could to keep his
scheme low key. He targeted specific, elite groups of investors, keeping his victims
close and the SEC off his back. He also stayed off the grid by keeping his paperwork
up to date and consistent. While most other Ponzi schemes operate by giving out large
returns and then collapsing, Madoff was able to tread water with his smaller returns
and keep his scam going for years.
2) Two (2) impacts of these behavior toward society and economy

The impact of these behavior toward economy is majority of investors rushed to

redeem their investment that made the firm bankrupt. Most of the hedge fund
companies and financial institutions that invested in the Madoff funds either faced
a financial crisis or failed when the business went bankrupt.

This has made a major contribution to the recent crash of the stock markets, which
has adversely affected the economy. This scam and others from risky investments
contributed to many economic problems that even spilled to social level including
jobs losses, auctioning of land, inflation and declining house prices, which also
spilled to the social level or depression. In Madoff case, his wife, Ruth needs to
settle with the feds for $205million. She also revealed that she and Bernie made a
suicide but didn’t go through with it.

These are in addition to family finances being extremely strained, economic stress
and depression setting in and the investment environment was largely curtailed,
hence the financial crisis hitting the economy.