Peter Madoff, Former Chief Compliance Officer and Senior Managing Director of Bernard L. Madoff Investment Securities, LLC

• Read the June 29, 2012, press release on Peter Madoff, younger brother of Bernard Madoff.

• Respond to the following Case Study Questions.

Required

a. Utilitarianism requires the identification of stakeholders who could suffer consequences due to the choice of a particular action.

i. Identify each of the stakeholders that the U.S. Attorney’s office recognized as parties that suffered consequences of Peter Madoff’s actions. Describe the kinds of consequences they may have suffered.

ii. Based on this utilitarian analysis, determine what Peter Madoff should have done.

iii. One form of consequentialism is egoism. Describe the concept of egoism. Identify how the U.S.

Attorney’s office addresses egoism in the case of Peter Madoff.

b. Deontology requires the identification of rationally derived duties.

i. Describe Peter Madoff’s duties as a company officer and the ways he fell short of fulfilling his obligations.

ii. According to Kant, we are bound by the moral law because we can rationally discern right action. Do you think “pure, practical reason”

offers a compelling incentive to choose the right course of action, or do you think external forces are necessary to keep people honest?

Why or why not? Be sure to use the situation of Peter Madoff in your answer.

c. At times, we must choose between competing ethical systems.

i. Compare and contrast the ethical analysis of Peter Madoff’s actions by a consequentialist with the analysis of a deontologist.

ii. In your view, which theory better identifies the salient moral issues at stake? Why?

iii. Do you think one system is more applicable to business ethics, or do you think it varies depending on the situation? Explain your answer.

d. The American Accounting Association Ethical Decision-

Making Model. Use the American Accounting Association’s Model to analyze this case from the point of view of a chief compliance officer who wants to act ethically in this situation.