The Fraud Of The Century: The Case Of Bernard Madoff

716 words - 3 pages

The Fraud of the Century: The Case of Bernard Madoff

The Ponzi’s scheme was named after Charles Ponzi who was an Italian businessman in US. Charles promised to their client that more than 50% profit within 45 days, or 100% profit within 90 days by buying discounted postal reply coupons in other countries and redeeming them at face value in the US as a form of arbitrage. However, Ponzi was paying money using the investments of later investors. This type of scheme is known and called Ponzi scheme. The same fraud were happened by Bernard Madoff was discovered in December 2008. Bernard Madoff who worked as the former non-executive chairman of the NASDAQ stock market, and the admitted ...view middle of the document...

In this case, the opportunity existed to deceive others without effective audits, as a result of this case, I know many investors don’t lack of money because they are rich but want to receive high interest earned for getting much money.
In this case study, I realized there are three charismatic related to either socially or professionally. What kind of motivation of Ponzi perpetrator? At least three critical components of a Ponzi scheme: First, it is essential for looking pretention clients and convince a group of people about investment idea; second is use his reputation and promises a high rate of return. Finally, he builds credibility by initially delivering on his or her promises. Furthermore, in Madoff case, I realize there are couple of ethical issues involved, such as he abuse the firm’s resource to cheat investors and SEC, also there were differences of interests between their employees and SEC.
Even Mr. Madoff confession his guilty as convicted fraudster, actually, he was not work alone, many people helped him in creating and sustain his Ponzi sheme. Let’s look at their family tree show below:

Other Papers Like The Fraud of the Century: the Case of Bernard Madoff

Fraud: the Gravest Sin of All

674 words - 3 pages and violence are serious sins, fraud is considered as the worst type of sin because it betrays a whole community of people and breaks the trust of one’s kin. According to the Shmoop Editorial Team (2008), fraudulent people are worse than incontinent and violent people because they have the ability to harm large groups of people instead of harming an individual. Fernando (2013) also notes that fraud also attacks the weak links in society. Fraud

The Lie of the Century Essay

2617 words - 11 pages | The Lie of The Century | Analysis of Bernard Madoff's Ponzi Scheme | | ' Introduction As long as the investment financial market existed, only one man was able to etched his name to the investment history as the greatest fraudster, and his name is Bernard Madoff. A brilliant fraudster that able to swindled over $50 billion from thousands of people using a type of investment fraud called "Ponzi Scheme." Using this type of

Character of the 21st Century

1251 words - 6 pages Character of the 21st Century Name: Institution: Date: Introduction The character of the 21st Century from a political, economic and social perspective would be chaotic. It should be appreciated that the world has gotten to a point of political, economic and social consciousness that puts pressure between the governed and the governors. From a social contract point of view, it is arguably correct to assert that the realisation of the

Women Of The 21st Century

1883 words - 8 pages enough evidence to give a proper case study. 4. There would not be enough data collected for the 21st century to forecast the revenue for now and for the next 4 to 5 years. Results and demographic breakdown The results involve the direction in relationship to entrepreneurship, demographics, and their total ideal performance. The entrepreneurial dimensions go hand in hand when deciding to do a case study of this kind. These relationships do

Hazards of the 21 Century

722 words - 3 pages Hazards of the 21st century. In my essay I would like to draw the readers’ close attention to the one of the most urgent issues of the 21st century, that is the environmental issue. New and terrifying events are happening as mankind is taking the first steps into the 21st century. The world’s population has always been faced with risks, but today such risks have the potential to inflict devastating damage on all that people value - the

Students of the 21st Century

1031 words - 5 pages James McNulty EDU-209 January 1, 1999 Mrs Crabtree Students of the 21st Century For this assignment I observed an “age group swim meet” in Springfield. I volunteered as a timer, which allowed me an up close and personal view of the kids I was observing. There were three separate swim teams participating in the meet, which totaled around 60-80 swimmers. There was 4 distinct age groups that competed: 8 years old and under, 9 & 10 year olds

Films of the 19th Century

3406 words - 14 pages until the end of their government obligation (2018). “Goal B” is to pay back the treasury taxpayer capital to once again retain profit. Once profit is realized, public trading will likely increase. Implementing a rental program on foreclosed homes is a logical and profitable way to both bolster economic growth and incur funds for loan repayment. The homes still have caretakers, so value will not drop further as with most foreclosed

The Worldcom Fraud

3511 words - 15 pages . Conclusion The WorldCom accounting fraud case is one example of a type of fraud that can take place at a company and the effect that the fraud has on the organization, employees, and investors. Berkshire Hathaway success is dependent on the ability to make profitable investment decisions with honest organizations by incorporating aggressive due diligence practices. Incorporating due diligence practices such as analyzing auditor qualifications

The Fraud Triangle

2121 words - 9 pages This is considered a low risk case because it contains only one element of the fraud triangle, opportunity. The company has an inadequate job applicant screening process. For all the company knows John could have a criminal history that involves theft and by hiring him they are basically handing him the opportunity to steal from them. Opportunity was also present from the day he started working at ABC Tile because there is no segregation of

And the Fraud Continues

1452 words - 6 pages And the Fraud Continues Tanya Niessen Professor Bill Makkawi Forensic Accounting April 22, 2012 Existing Internal Control Weaknesses at MCI There were several existing internal control weaknesses at MCI in which Walt Pavlo used to his advantage when he perpetrated the fraud. One weakness was that Pavlo helped create the accounts receivable process and therefore knew the strengths and weaknesses of the process (Lyons & Tocco, 2007

The Enron Fraud

1057 words - 5 pages The Enron Fraud Enron Corporation was a conventional energy company founded in 1985, but soon expanded its operations as an energy trader of derivatives contracts, taking advantage of the deregulation of the energy markets. It also built and operated a variety of assets across the globe, including pipelines, electricity plants, pulp and paper plants, water plants, and broadband services; and provided financial and risk management

Related Essays

Bernard Madoff Fraud Essay

3467 words - 14 pages Abstract This report allows the facts to be known concerning the still mysterious case of Bernard L. Madoff and his longtime investment securities activities, which eventually turned into an enormous fraud of incomparable size. In this report, you will begin to understand how Bernard Madoff was able to execute such an elaborate fraud. The illegal business behavior found in this case is too numerous to count however, quite a few will be

The Threat Of Fraud Essay

1630 words - 7 pages The Threat of Fraud Tracey Brewer American InterContinental University Security and Loss Prevention CRJS270-1301B-01 Jade Pumphrey March 28, 2013 Abstract Identity theft, whether on a personal or business level is a criminal act. So, for many years individuals have plotted and schemed to come up with scams to obtain personal information from other individuals or organization to either sabotage one’s reputation or obtain financial gain

Business Ethics Case: Bernard Madoff Essay

2412 words - 10 pages securities fraud, money laundering and perjury (Washington, 2012).” Judge Denny Chin was in charge of the proceedings, and on June 29, 2009, Bernard Madoff, former chairman of the NASDAQ stock exchange, was sentenced to the maximum penalty of 150 years. This paper will seek to analyze this case in its multiple dimensions in order to identify all ethical issues and propose potential alternatives to the moral choices that Bernard Madoff made. Facts

The Culpability Of Accounting Fraud Essay

3196 words - 13 pages The Culpability of Accounting Fraud: Auditors, Managers or Both ACC 503 – Accounting for Management Abstract The purpose of this term paper is to provide insight to the reader about accounting fraud and on whom the responsibility lays whenever there is an allegation of accounting misconduct. Based on the rash of accounting fraud by major respectable corporations in recent years, no one organization is