The objective of this assignment is to consider the essential elements of a Ponzi scheme, understand how and why the Madoff scheme was perpetuated and lasted so long, and how to avoid becoming a victim of this type of fraud.

This assignment should be 700 words in length, in APA format, and include the following:

1.A description and history of Ponzi schemes.

2.The essential elements of a Ponzi scheme.

3.Background on Madoff and his scheme.

4.The reasons Madoffs fraud lasted so long.

5.The SECs actions and role in the case.

6.Red flag indicators of a Ponzi scheme.

7.Actions to avoid becoming a Ponzi scheme victim.

To consider this issue fully, review The Madoff Affair athttp://www.financedocumentaries.com/2011/06/madoff-affair.htmland usehttp://www.sec.gov/answers/ponzi.htmas a resource.