The Bernie Madoff fraud happened because of greed. All of the people involved wanted more and more money and eventually the system collapsed. On March 12‚ 2009‚ Bernie Madoff pled guilty to the largest Ponzi scheme in history. He successfully took $65 billion from investors that trusted him with their money. Why the fraud case was created Bernie Madoff had his investors believe that they were making a lot of money through his investment firm (Bernard Madoff Securities)‚ by creating false trade
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Bernard Madoff was a creditable man that people trusted him with their money because “he created an image of power‚ trust and responsibility.” (Ferrel‚ 2013‚ p. 416) He was able to scam and scheme his investors from the early 1990s up until December of 2008 when his Ponszi scheme was discovered. Over the course of a decade he was simultaneously running a legitimate business and earned his investors’ trust because he didn’t make any promises of unbelievable returns. He was a financial
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Ayusarita Satriani 311368 – IUP BUSINESS UGM Financial Management ENRON Resources: http://en.wikipedia.org/wiki/Enron_scandal ; http://news.bbc.co.uk/2/hi/business/1780075.stm; http://finance.laws.com/enron-scandal-summary Enron is an energy company that successfully grew from nowhere to be America’s seventh largest company‚ which has 21‚000 staff in more than 40 countries in 15 years. It was one of the world’s leading electricity‚ natural gas‚ communications‚ and pulp and paper companies
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Theft‚ and Fraud. Bernie Madoff was a well-known and respected stockbroker who committed the largest white-collar crime in Wall Street history. Madoff was found guilty for eleven felony counts and sentenced to 150 years in jail. Madoff used a ponzi scheme to collect investors money giving the investors intentions each person would be promised a gain of ten percent or more. Madoff greed not only affected the rest of his life in a horrific way but it also affected the common good of the community
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several luxurious homes‚ and even had two private planes. He was completely living the wealthy and lavish lifestyle‚ which was soon to come to an abrupt end. In December of 2008‚ Madoff admitted that a branch of his firm was actually an elaborate Ponzi scheme. Madoff’s sons reported their father to federal authorities and he was arrested and charged with securities fraud. He later admitted to losing $50 billion of investors’ money‚ and pled guilty to 11 felony counts including securities fraud‚ investment
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Bernard L. Madoff Investment Securities LLC operates as a securities broker/dealer in the United States and internationally. It provides executions for broker-dealers‚ banks‚ and financial institutions. The company was founded in 1960 and is headquartered in New York‚ New York. As of December 15‚ 2008‚ Bernard L. Madoff Investment Securities LLC is in liquidation. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960 Bernard Madoff was born on April 29‚ 1938‚ in
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that their father made damaging statements‚ and confessed to them that the business was a lie‚ that it was a Ponzi scheme from the beginning‚ which led Federal agents to arrest Madoff‚ and all those involved. Madoff told authorities that the scheme began in 1990‚ but according to the FBI‚ it was started early as the 1970s. It has been reported that Madoff’s trial of deceit led his scheme to accumulate as much as $65 billion‚ with a reported
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Cheating is always wrong Society provides many examples of grown people cheating; from card games to relationships‚ sports‚ politics‚ academics‚ employment and the list goes on. A common phrase is “If you’re not cheating you’re not trying”. Cheating is so common it worked itself into the very fabric of American life‚ permeating nearly everything we come into contact with; “well everybody else does it” some say. While there is no doubting the argument made by those who invest their entire life
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Q.3. Is there anything else that can be done to curtail this sort of egregious business behaviour (scandals) other than legislation? Legislation is a good method to guide and regulate the business behavior. Besides‚ the education is very important. If the whole society and the whole business world can have the good consciousness and ethical environment‚ the legislation may not so important. Q.4. In each case discussed at some length in this chapter – Enron‚ Arthur Andersen‚ WorldCom‚ and Bernie
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4. Martha Stewart’s Lost Reputation Discussion of ethical issues 1. What was the basis of Martha Stewart’s reputation? 2. Why did MSO’s stock price decline due to Martha Stewart’s loss of reputation? 3. Who is Martha Stewart’s target market? 4. What qualities were associated with the Martha Stewart brand‚ before the controversy? Which of these were affected by the accusations of insider trading‚ and how? How would you find out for sure? 5. What level of sales and profits would MSO have
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