Earning Money - Special English Audiobook

     Earning Money

Earning Money

  Welcome to Spotlight.
   Welcome to Spotlight.
  I'm Liz Waid.
   I'm Liz Waid.
  And I'm Joshua Leo.
   And I'm Joshua Leo.
  Spotlight uses a special English method of broadcasting.
   Spotlight uses a special English method of broadcasting.
  It is easier for people to understand, no matter where in the world they live.
   It is easier for people to understand, no matter where in the world they live.
  Bernard Madoff stood in court.
   Bernard Madoff stood in court.
  He listened as his victims spoke about his crimes.
   He listened as his victims spoke about his crimes.
  They described how he had stolen their money.
   They described how he had stolen their money.
  They described how he had hurt them.
   They described how he had hurt them.
  He listened to the judge's decision one hundred and fifty years in jail.
   He listened to the judge's decision one hundred and fifty years in jail.
  Why was the sentence so long?
   Why was the sentence so long?
  Bernard Madoff had not stolen money from a few people.
   Bernard Madoff had not stolen money from a few people.
  And he had not stolen one hundred dollars, or even one thousand dollars.
   And he had not stolen one hundred dollars, or even one thousand dollars.
  He had stolen more than eighteen thousand million 18,000,000,000 dollars,
   He had stolen more than eighteen thousand million 18,000,000,000 dollars,
  from thousands of people!
   from thousands of people!
  Today's Spotlight is on Bernard Madoff
   Today's Spotlight is on Bernard Madoff
  and his financial crime a Ponzi scheme.
   and his financial crime a Ponzi scheme.
  A Ponzi scheme is a particular kind of financial crime.
   A Ponzi scheme is a particular kind of financial crime.
  It takes its name from Charles Ponzi,
   It takes its name from Charles Ponzi,
  a criminal who used this method many years ago
   a criminal who used this method many years ago
  to steal money from people.
   to steal money from people.
  A Ponzi scheme is a type of fraud.
   A Ponzi scheme is a type of fraud.
  Fraud is common around the world
   Fraud is common around the world
  anywhere that people use money!
   anywhere that people use money!
  Fraud is a kind of lie
   Fraud is a kind of lie
  lying to people so that they freely give money to the liar.
   lying to people so that they freely give money to the liar.
  Madoff's Ponzi scheme was an investment fraud.
   Madoff's Ponzi scheme was an investment fraud.
  He was a well known investment manager.
   He was a well known investment manager.
  People gave him control of their saved money.
   People gave him control of their saved money.
  The idea was that he would invest the money in global financial markets.
   The idea was that he would invest the money in global financial markets.
  They would earn money through these investments
   They would earn money through these investments
  sometimes a lot of money!
   sometimes a lot of money!
  Madoff began his investment business in 1960.
   Madoff began his investment business in 1960.
  His company grew to be one of the largest investment companies
   His company grew to be one of the largest investment companies
  in the United States.
   in the United States.
  Madoff also served as the leader of the NASDAQ stock exchange
   Madoff also served as the leader of the NASDAQ stock exchange
  one of the most important financial markets.
   one of the most important financial markets.
  With his brother, he worked to make this market more responsible, and honest.
   With his brother, he worked to make this market more responsible, and honest.
  They used computer networks to make this happen.
   They used computer networks to make this happen.
  This is one reason that so many people trusted Madoff.
   This is one reason that so many people trusted Madoff.
  He was very successful
   He was very successful
  and he worked for openness and honesty in financial markets.
   and he worked for openness and honesty in financial markets.
  However, at the same time, for twenty years,
   However, at the same time, for twenty years,
  he stole a lot of money from investors.
   he stole a lot of money from investors.
  So how did he do it?
   So how did he do it?
  Madoff's financial organization was divided into two parts.
   Madoff's financial organization was divided into two parts.
  One part was an honest share-dealing business.
   One part was an honest share-dealing business.
  It provided a service for people wanting to buy and sell company shares.
   It provided a service for people wanting to buy and sell company shares.
  But in the same building,
   But in the same building,
  a separate business was operating in other offices.
   a separate business was operating in other offices.
  This business promised to invest people's money and make good profits for them.
   This business promised to invest people's money and make good profits for them.
  Many people and organizations gave Madoff control of their money.
   Many people and organizations gave Madoff control of their money.
  They hoped they would make big gains
   They hoped they would make big gains
  but they did not know this business was in fact a Ponzi scheme.
   but they did not know this business was in fact a Ponzi scheme.
  Madoff's Ponzi scheme worked like this:
   Madoff's Ponzi scheme worked like this:
  The investors expected to earn interest on their money.
   The investors expected to earn interest on their money.
  They believed that their money was growing.
   They believed that their money was growing.
  But Madoff did not actually invest the money that people gave him.
   But Madoff did not actually invest the money that people gave him.
  Instead, he used money from new investors to pay old investors.
   Instead, he used money from new investors to pay old investors.
  Madoff continued to attract new investors, to continue the scheme.
   Madoff continued to attract new investors, to continue the scheme.
  And some people did gain from their investments
   And some people did gain from their investments
  when they closed their investments, Madoff did give them their money.
   when they closed their investments, Madoff did give them their money.
  However, he used the money from new investors to pay them.
   However, he used the money from new investors to pay them.
  Madoff continued this scheme for more than twenty years.
   Madoff continued this scheme for more than twenty years.
  He offered a high interest rate
   He offered a high interest rate
  he promised that people could make a lot of money with his investments.
   he promised that people could make a lot of money with his investments.
  And many important people invested with him,
   And many important people invested with him,
  including the Hollywood director Steven Spielberg.
   including the Hollywood director Steven Spielberg.
  Some critics questioned Madoff's success,
   Some critics questioned Madoff's success,
  but there was no evidence that his investments were a fraud.
   but there was no evidence that his investments were a fraud.
  A Ponzi scheme can continue for a long time.
   A Ponzi scheme can continue for a long time.
  But finally, it cannot continue to pay the investors.
   But finally, it cannot continue to pay the investors.
  And this is what happened with Madoff.
   And this is what happened with Madoff.
  He told his family about the fraud in December 2008.
   He told his family about the fraud in December 2008.
  They immediately called the police, and Madoff was arrested.
   They immediately called the police, and Madoff was arrested.
  There are many estimates about the size of the fraud.
   There are many estimates about the size of the fraud.
  But over the years, he had hundreds of thousands of investors.
   But over the years, he had hundreds of thousands of investors.
  They had invested more than sixty five thousand million dollars.
   They had invested more than sixty five thousand million dollars.
  Most of the money was gone.
   Most of the money was gone.
  It had gone in payments to other people.
   It had gone in payments to other people.
  And Madoff had also used the money himself.
   And Madoff had also used the money himself.
  At his trial, Madoff spoke to his victims.
   At his trial, Madoff spoke to his victims.
  He said that he had not planned such a large financial fraud.
   He said that he had not planned such a large financial fraud.
  He said:
   He said:
  I am thankful for this chance to speak about my crimes.
   I am thankful for this chance to speak about my crimes.
  I am very sorry, and I feel great shame.
   I am very sorry, and I feel great shame.
  I know I have deeply hurt many, many people.
   I know I have deeply hurt many, many people.
  Most of Madoff's victims did not believe these words.
   Most of Madoff's victims did not believe these words.
  Some had lost all of their saved money
   Some had lost all of their saved money
  the money they needed as they got older.
   the money they needed as they got older.
  Some had lost more than a million dollars.
   Some had lost more than a million dollars.
  At the court, some victims were satisfied with the judgement.
   At the court, some victims were satisfied with the judgement.
  But others were not.
   But others were not.
  They just wanted their money back
   They just wanted their money back
  he judgement would not return their money.
   he judgement would not return their money.
  It is likely that Madoff will spend the rest of his life in prison.
   It is likely that Madoff will spend the rest of his life in prison.
  And he has also paid a larger price.
   And he has also paid a larger price.
  His brother and sons worked as investment managers too.
   His brother and sons worked as investment managers too.
  They are not accused of the same crimes
   They are not accused of the same crimes
  it seems that they did not know about the fraud.
   it seems that they did not know about the fraud.
  But the pressure was too high for Madoff's older son.
   But the pressure was too high for Madoff's older son.
  In December 2010, he killed himself.
   In December 2010, he killed himself.
  Madoff's Ponzi scheme was very large.
   Madoff's Ponzi scheme was very large.
  It affected many people, in many different countries.
   It affected many people, in many different countries.
  But financial crimes like Ponzi schemes are not always large.
   But financial crimes like Ponzi schemes are not always large.
  Much smaller financial crimes are common in many countries.
   Much smaller financial crimes are common in many countries.
  So how can you protect yourself?
   So how can you protect yourself?
  There is one simple rule for avoiding financial fraud:
   There is one simple rule for avoiding financial fraud:
  If it seems too good to be true, it probably is!
   If it seems too good to be true, it probably is!
  When someone gives you a financial offer,
   When someone gives you a financial offer,
  are they promising something much better than anyone else?
   are they promising something much better than anyone else?
  Does it seem TOO good?
   Does it seem TOO good?
  Then it may be false - a fraud.
   Then it may be false - a fraud.
  In that situation, ask a lot of questions.
   In that situation, ask a lot of questions.
  Investigate before you give any money.
   Investigate before you give any money.
  Make sure that you can trust the offer.
   Make sure that you can trust the offer.
  Financial fraud is serious.
   Financial fraud is serious.
  But it would not be successful without greed.
   But it would not be successful without greed.
  People need money, but it is possible to love money too much.
   People need money, but it is possible to love money too much.
  Earning money takes hard work.
   Earning money takes hard work.
  It takes attention to the details.
   It takes attention to the details.
  It is not possible to earn a lot of money with no effort.
   It is not possible to earn a lot of money with no effort.
  Bernard Madoff used his investors' desire for money, and he stole from them.
   Bernard Madoff used his investors' desire for money, and he stole from them.
  What do you think?
   What do you think?
  Have you seen any financial crimes where you live?
   Have you seen any financial crimes where you live?
  Share your comments on our website: http://www.radio.english.net.
   Share your comments on our website: http://www.radio.english.net.
  Or you can write to us at radio@english.net.
   Or you can write to us at radio@english.net.
  The writer of today's program was Christy VanArragon.
   The writer of today's program was Christy VanArragon.
  The producer was Joshua Leo.
   The producer was Joshua Leo.
  The voices you heard were from the United States.
   The voices you heard were from the United States.
  All quotes were adapted for this program and voiced by Spotlight.
   All quotes were adapted for this program and voiced by Spotlight.
  This program is called Earning Money?
   This program is called Earning Money?
  You can also find Spotlight on Facebook.
   You can also find Spotlight on Facebook.
  Just search for Spotlight Radio.
   Just search for Spotlight Radio.
  We hope you can join us for the next Spotlight program. Goodbye!
   We hope you can join us for the next Spotlight program. Goodbye!

 

 

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