Bernard more clients. Granovetter believes that the distant acquaintances

Bernard Madoff
utilized social networks to expand his fraud scheme. After his arrest in 2008,
it was difficult to believe that his investment was a fraud. Many people within
his social circle had trusted Madoff due to his participation in charity
projects and the manner in which he presented his investment. Since the 1960s,
he had been operating as fraud scheme, convincing people to invest their money
and earn significant percentages of profits. He took advantage of the Jewish
cultural system to convince fellow Jews to invest in his plan. He had served
actively in the financial industry a factor that made him a reliable person in
the eyes of the public. It is apparent that he relied on both strong and weak
ties to establish connections that helped in expanding his fraud scheme.

According to the
concepts of Granovetter, establishing a reliable social network requires both
strong and weak ties. In the case of Madoff, the strong ties included his close
friends and confidants, family members, as well as people of the Jewish
religion. However, through his participation in charity events and his
membership in golf clubs, he was able to establish extensive weak ties that
allowed him to have more clients. Granovetter believes that the distant
acquaintances are beneficial to an individual. Madoff benefitted from the
distant acquaintances because he was able to access new recommendations for potential investors. People who knew him
were willing to introduce him to other investors who would benefit his scheme. It
is apparent that Madoff recognized the benefits of social ties because he joined
different golf clubs and participated in various events that earned him the
trust among people.

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A critical
analysis of Madoff’s scheme reveals that he used the hard-to-get strategy as a
way of appealing to more investors. He did not allow some of the potential
investors to become part of the scheme. He often declined to introduce some
investors to his business even when they were evidently interested. Turning new
investors was a strategy that he used to appeal to a larger percentage of
investors. The few who were accepted into
the scheme felt that it was a privilege to be part of the Madoff’s investment. It
is unfortunate that they did not realize that the hard-to-get strategy was a
tactic of convincing more people that his business was a worthwhile investment.

For several decades, he expanded his scheme using this strategy, and it was
impossible to detect his illegal activities.

Madoff ensured
that his fraud scheme was safe and not easily detectable. Particularly, he
encouraged more people to save for longer periods before they could start
earning the consistent profits. At the same time, he ensured that the new
clients were willing to invest large amounts of money. He used the money from
new clients to pay off the old clients, and
the scheme appeared profitable to everyone. However, it was only him who was
aware that there were no business activities to justify the investment. Despite
the reports made to the regulatory board, Madoff did not leave any hints about
his fraudulent scheme. He ensured that the entire scheme appeared legitimate
and profitable. The people within his social circle had witnessed the earlier
clients receiving their benefits and were
convinced that with time, they would also earn their profits if they
joined the investment.