The Financial Services Industry
Despite its impressive mission and capabilities, FINRA has a bit of an embarrassing history. The one and only Bernie Madoff held big leadership roles at FINRA’s predecessor, the National Association of Securities Dealers (NASD). He served as NASD’s vice chairman, a member of its board of governors, and chairman of its prominent New York region, all while running the largest Ponzi Scheme in history. Needless to say, his crimes were never detected by industry self-regulators (or government regulators for that matter). Authorities only learned of his activities when he was turned in by members of his own family.
A fraudulent investment operation that tricks investors into thinking that they will earn lots of money on a short-term investment, when, in reality, there isn’t any investment opportunity at all. Rather, the promoter just uses the money from new recruits to pay off the older investors. In other words, stealing from Peter to give to Paul.