Explanation:
A significant red flag in the Bernie Madoff fraud case was his extreme secretiveness and complete lack of transparency. He refused to provide electronic access to accounts or detailed, transparent portfolio information to clients and auditors, relying instead on paper-based, delayed, and fabricated statements to cover up the Ponzi scheme.
Ultimate access to all questions.
Q.31 In the Bernie Madoff fraud case study, which of the following actions was a significant red flag that contributed to the ultimate discovery of the Ponzi scheme?
A
High-frequency trading activity.
B
Madoff's refusal to provide detailed portfolio information.
C
An unusually high volume of international investments.
D
Frequent changes in the company's legal counsel.
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