The Scheme Of Ponzi Scheme

The Scheme Of Ponzi Scheme
You would probably invest your money if someone promises you a large return with little or no risk, if the organization is large and public; or
people who recommend you to invest are your close friends or relatives, or just someone you believe is trustworthy. Investors always believe that
they are smart enough to identify the frauds. However, fraudsters become increasingly astute to sugar up the schemes in order to make it look like a
real one. Typically, scam makers claim they are savvy or skilled at investing.
A Ponzi scheme is one of the common frauds in life. It is a special type of illegal pyramid operation (Wells, 2010). The scheme organizers promise
high rates of return with little risk to investors. In many Ponzi schemes, the ... Show more content on Helpwriting.net ...
Just two levels below, the participants needed is greater than the world population.
Look back in history, the biggest Ponzi schemes are all conducted by large organizations and seemingly credible individuals. The following timeline
shows the eight recent Ponzi scheme in history (Drew & Drew, 2010). Ponzi scheme is named after Charles Ponzi, the first Ponzi scam maker
recognized. He promised investors a return of 50% profit within 45 days, or 100% profit within 90 days via stamp speculation, to buy postage stamps
using international reply coupons. Charles claimed this strategy enabled one to purchase postage at European currencies ' lower fixed rates before
redeeming them in U.S dollars at higher values. The scheme lasts 2 years (1919–1920) and costs investors $15 million. It equals $159 million in today
's inflated dollars (Cantoni, 2009).
The most recent one is conducted by Bernard L. Madoff, the largest Ponzi scheme in history. From 1975 to 2008 (23 years), the scam costs investors $
50 billion, including the opportunity cost (Bernard Madoff, wsj.com). The following two line charts show the trend of the eight Ponzi schemes. As
time goes by, it takes longer and longer for the fraud to be detected. However, it is not necessary that the loss is getting greater. The second line chart
does not show Madoff's case, because his loss is so big that it will skew the graph, and the fluctuation trend will disappear.
Figure 2:
Timeline of Ponzi Schemes
Year

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An Average Work Day For Eleanor Squillari
December 11th, 2008 started out like an average work day for Eleanor Squillari, secretary for Mr. Bernie Madoff, at Bernard L. Madoff Investment
Securities. After reaching her desk she received a call from Ruth Madoff, who sounded rather lifeless instead of her usually upbeat self. Ruth was
inquiring whether her sons had made it into the office; Eleanor informed her that they hadn't, while in the back of her mind she kept thinking about
Ruth's strange voice. However, she didn't question it but continued her day, going on her regular rounds. As she descended to floor 18 she
observed that the conference room was full of serious men is suits, all surrounding Peter Madoff, Bernie's bother. "Strange," she noted, along with
why Bernie still hadn't shown up. She was interrupted by a big man in a trench coat walking in her direction, but she questioned him first. He
responded by flashing his badge and yelling "F.B.I!" "What's happening? Was someone kidnapped? " she didn't know where to start, but her
confusion was resolved when Peter 's secretary walked over. Looking stunned, she said "They 're saying that Bernie was arrested for fraud." "No,
that's not true!" Eleanor replied, but Peter walked by and reaffirmed it. She was shocked; for twenty years she never noticed anything about the
international White Collar crime that was run right under her nose (Seal, Squillari). What is a White Collar crime? It's a crime that is committed in
high business positions, but it can be

History Of The Ponzi Scheme
A Ponzi scheme is where the operator entices potential investors into fraudulent investments by offering them high returns on the money they invest.
The main operator of this scheme is the only one that makes a significant amount of money. The operator will tell the investor he will make outstanding
amounts of money and will reap some benefits. The way the investor makes money is due to the fact that the operator is deceiving new investors into
investing new money into the scheme. History Ponzi schemes are named after Italian immigrant, Charles Ponzi. In 1920 he led investors into believing
they could reap outrageous amounts of returns if they would invest their money with him. Charles Ponzi invented these schemes after he failed many
times to be... Show more content on Helpwriting.net ...
The biggest deception is the real fact that this will last and the operator will not get caught. History has shown us that these schemes will fail and
even the wisest leader of these schemes eventually succumbs to greed and over confidence. In the late 1800's a man by the name of William
Miller scammed his investors into thinking they could earn 520% in one year if they invested in his business. William Miller stole close to 25
million dollars before being exposed and served only ten years in jail. One more example in recent years would be the case of Bernard Madoff in
2008 a popular Wall Street money manager. Bernard Madoff was estimated at scamming billions of dollars from his clients and leaving them with
depleted bank accounts, trust funds and inheritances. Bernard Madoff was able to scam some of the most elite clientele from Hollywood and the most
rich and famous around the world. Bernard Madoff obtained this money by stealing it from his customers that entrusted to him for their investment
advisory accounts. The people that Bernard Madoff scammed will never be able to recover their

Bernie Madoff Research Paper
In 2008 this country faced one of the worst fraud scams in the history of the United States. Bernie Madoff one of the most reputable hedge fund
managers at the time perpetrated a ponzi scheme of epic proportions. Bernie Madoff was able to fraud investors of over 25 billion dollars, creating a
non–transparent business envoirment. This atrocity effected different types of investors, expanding across all different industries, and with his
transgressions he earned 150 years in jail. Since then regulation in the accounting and Finance field has increased dramatically, and has made it a lot
harder for companies to get away with "cooking the books". Bernie Madoff started his investing days in the 1960s. After he graduated Hofstra
University with... Show more content on Helpwriting.net ...
Named after Charles Ponzi in 1919 a ponzi scheme is a fraudulent investment scam promising high rates of return with little risk to investors, by
taking money from new investors in order to pay older investors (Investopedia). It all started when Charles Ponzi guaranteed clients that he was
able to bring customer 50 % roi in just 90 days (Business Insider). Madoff received money from new prospective investors, using the new money he
received from investors he payed off old investors, who decided to stop investing with Madoff. This caused a huge asymmetric rift that favored
Madoff greatly, because his reputation automatically attracted investors to his hedge fund, without investors knowing he was purposely stealing their
money. A question remains why was this able to be to continue for so long? There are many reasons but to begin Bernie Madoff's reputation helps us
answer this question. Bernie Madoff was a highly regarded financial mind in the industry for many years. He was the chairman of the Nasdaq, one of
the big 3 exchanges in the United States. This brought him to the public eye even more then he already was. However the big reinforcement to
Madoff's credibility was the contionous backing from the SEC. The SEC gave Madoff even more clout then he already had in the industry. When you
combine backing from the SEC and a quality reputation of providing high returns, sets up for an investor hotbed. Madoff;s time was running out
however, his consistent success made other investors/ firms inquisitive about where he received his money

Bernie Madoff's Unethical Behavior
Bernie Madoff is a perfect example of how unethical behavior can turn into corruption. Madoff, a former investment and stockbroker, was formally
introduced to the world as the 'sole' operator in the largest Ponzi scheme on record. Madoff turned his financial management company into a colossal
Ponzi scheme that swindled billions, from thousands of his investors. According to federal investigators, Madoff's Ponzi scheme began as early as the
1980's and continued to operate under sheer deception and utter lies. Madoff's powerful presence, narcissism, voracity and unethical behavior had him
pleading guilty to eleven federal offenses, including: wire fraud, securities fraud, money laundering, mail fraud, false statements, lying under oath,
larceny, ... Show more content on Helpwriting.net ...
In this case, it appears that Madoff had many friends and family members who were involved in the fraud. Speculate about how likely it is that
Madoff's own sons, who were employees of the firm, knew nothing of the fraud as they stated.
Madoff's sons were highly suspected of being aware of the fraud, but they both adamantly denied this, and charges were never brought because one
son killed himself while the other died of cancer. A federal investigation was on the cusp of charging the son who died of cancer with tax evasion
resulting from the Ponzi scheme before his death this year it was reported.
4.Explain the ethical issues that are associated with running a family–owned business. Are these issues present within Madoff's firm?
Ethical issues associated with running a family–owned business, is a lack of checks–and–balances, because of familial ties. In Bernie Madoffs' case,
many of the primary people in the business were family members such as his chief compliance officer, which is supposed to reassure investors that
everything is as it should be. Madoff's chief compliance officer was his niece, Shana Madoff. In addition, she had married a former employee of the
US Securities and Exchange Commission who had a role the investigation of Madoff in 1999. The husband may have been able to coach Shana
Madoff on how to avoid raising red flags that attract

Charles Ponzi Research Paper
All About Charles Ponzi
Charles Ponzi was born on March 3, 1882 in Italy. According to the New York Times, Ponzi came from a wealthy family who lived in the city of
Parma in Italy. Before he attended the University of Rome La Sapienza, he had worked as postal worker.
Later in his life, he moved to the United States in 1903 by boarding the S.S Vancouver vessel. During the trip, Ponzi had decided to spend all of his
money on gambling and in the end, he was left with only $2.50 when he reached the shores of Boston. Therefore, this situation forced him to learn
English quickly so he would be able to find a job in the States. After that, he was fortunate to find a job at a restaurant, but in the end, he was fired due
to his actions, which includes, treating customers unfairly and stealing. ... Show more content on Helpwriting.net ...
His first job in Canada was being an assistant teller at a bank which served many italian immigrants living that city. Despite the fact that he got
promoted to the bank manager position, he ended up losing his job because the bank was in a financial crisis. As a result, he ended up living at his
boss's house and helping the boss's family out, since the boss had fled to Mexico due to the bank's crisis. However, his fraudulent behavior was
shown again, just like what has happened before, he stole money from a Zarossi customer by writing himself a check that worth $423.58 on a
checkbook that he found in the customer's office. In addition, he forged the signature on the check. Thus, he was put into jail for 3

White Collar Crimes: The Pyramid Scheme And Ponzi Scheme
A Ponzi scheme and a pyramid scheme are white collar crimes, that have been around for about a century. While they both differ in many ways, they
also share many characteristics. They are both a form of fraud and while most white collar workers commit fraud through Ponzi schemes and pyramid
schemes, almost anyone can commit these types of fraud. A Ponzi scheme is when the criminal, often someone that is trusted, respected, and is already
successful makes a promise to investors to invest their money into stock but does not actually invest the money at all. Many times these white collar
criminals use the money for their lavish lifestyle or to feed their own side business ventures. They often promise a consistent, high return on their
investment, which can come off as ... Show more content on Helpwriting.net ...
Madoff. Madoff was highly respected and was considered a talented and successful market genius. While it was uncovered that there were losses of
$65 billion, Madoff has confessed that he made no where near that amount. He was able to pull such a notorious Ponzi scheme because of his respected
name and his "invite–only" method for investors, making it seem as if the investments were legitimate (Ferrell, et. al., 2017). A pyramid scheme,
however, is also fraud but different in terms of how investors actually become investors. Pyramid schemes require individuals to pay an upfront fee
to join and promises that they will gain a return depending on how many other individuals they can get to join. This may cause some confusion to
people on whether a business is legit or a pyramid scheme. One of the main flags that a business can be a pyramid scheme, is if one must pay to
join. Another red flag, is if one is not making returns on the products they sell or if the products they sell are of no value. Pyramid schemes usually
collapse quicker than Ponzi schemes as pyramid schemes require more and more individuals to join without any major push of a product being

Accounting Scandals Of Enron Company
Baasit Kazi
Ms. Bogert
College Accounting 1–1B
28 April, 2015
Accounting Scandals Reflection
Enron was founded in July of 1985. Enron was an electricity and natural gas company which was a fortune 500 company and it was ranked the sixth
largest energy company in the world. Enron's stock went from a peak of $90.75 to $0.67. This was very detrimental to stockholders. Enron's top
executives sold their stock a long time before the stock price fell. A lot of lower level employees could not sell their stock because of deals they
made with the company. This later caused a lot of these employees to lose their life savings and everything they had worked for. Enron used a very
complex accounting method to trick the stock market. This method was called "mark to market" accounting. Enron used this method of accounting to
predict and project their earnings in a long term period. These earnings were projected based on the long term energy contracts Enron was going to
make. This could have been money that was not made at that point. This made Enron's stock price skyrocket at a very fast pace, making a lot of
employees and general public invest in the stock. Enron stock seemed to be a very secure and profitable investment which would make people lots
of money. The Fortune 500 company went down very quickly. In August of 2001, the CEO of Enron, Jeffrey Skilling resigned. He randomly resigned
and a lot of suspicions arose. His resignation was described to be because of personal reasons.

How Did Ponzi Schemes Ruining People Live Around The World?
Glen Oliver Year 10 Business Studies Teacher: Mr Hijazzen Ponzi Schemes Throughout history there have been things called Ponzi schemes ruining
people lives around the world. This report will include: what it is, how it works, characteristics, A Ponzi scheme is a fake investment operation where
the operator of an organisation or an individual pays returns to the investors from new capital paid to the operator by new investors to the operation
rather than from the money that's earned by the operator. The operators of Ponzi schemes lure new investors by offering high returns in the form of
short term returns that are very consistent or very high. Ponzi schemes usually begin as normal

Ponzi Schemes Effects
Although a clear red flag, the alluring promise of high, consistent returns continues to persuade rookie and seasoned investors to unknowingly invest in
Ponzi schemes. Coined in the early twentieth century after a Boston fraudster named Charles Ponzi, a Ponzi scheme is a form of investment fraud, in
which newly invested money is used to repay existing investors (Ponzi Scheme, n.d.). Since the money is not actually invested, there is no way for
Ponzi organizers to generate money for their clientele, which is why Ponzi schemes quickly collapse when recruitment stalls or large numbers of
investors decide to cash out (Ponzi Scheme, n.d.). Despite being a white–collar crime, Ponzi schemes have incalculable effects on society. For example,
a 1996... Show more content on Helpwriting.net ...
Ponzi schemes are non–discriminatory crimes; they effect large corporation and blue–collar individuals alike. After the collapse of a Ponzi scheme,
large corporations may find themselves out of millions of dollars and retirees may no longer possess the capital essential for retirement. Other
undesirable effects of a Ponzi include, return of any principal or interest received by investors if the Ponzi organizer's creditors file for bankruptcy,
further financial strain on investors if they must obtain the counsel of a tax adviser, and public shame if records concerning the Ponzi are publicized
revealing the identity of investors (Benson, 2009). In addition, non–profit intuitions may be forced to return any charitable gifts or donations received
from a schemer (Benson, 2009). Such was the case for Middle Tennessee University, after a bankruptcy trustee demanded the return of a $900,000
donations gifted to the university by a Ponzi schemer named Robert McLean (Benson, 2009). Therefore, it is important for future investors to do their
due diligence when decided to invest their money. For starters, they can go through a checklist of red flags to determine if the investment is a Ponzi.
According to Investor.gov Ponzi red flags include, high returns with very little risk, unlicensed sellers, unregistered investments, secretive complex
strategies, and paperwork issues (Ponzi Scheme, n.d.). Furthermore, a potential investor may want to seek the advisement of a CPA to ensure the
sincerity of their

How Did Bernard Madoff Create A Ponzi Scheme
I think Bernard Madoff engaged in creating a Ponzi scheme because of greed. His unethical behavior was based on white collar crime (Ferrell,
Fraedrich, & Ferrell, 2013). Mr. Madoff met the characteristics of a white collar criminal. The characteristics consist of people who are highly
educated and considered as reliable among their subordinates and peers. They are usually in an executive position that would give them the power to
commit their crimes to their company, employees, and investors (Ferrell, et al, 2013). Mr. Madoff's Ponzi scheme took careful coordinating and
preparation to last as long as it did and to become the largest Ponzi scheme in history. He used his greed to entice the greed of his investors by offering
them unrealistic

What Was Madoff's Ponzi Conspiracy?
An all–around regarded lender, Madoff persuaded thousands regarding financial specialists to hand over their funds, dishonestly encouraging steady
benefits consequently. His misconduct was noticed in December 2008 and accused of extortion, illegal tax avoidance, evasion, and burglary. Madoff
utilized the alleged Ponzi conspiracy, which attracted several financial specialists in by ensuring uncommonly noteworthy earnings. The name begun
with Charles Ponzi, who guaranteed half profits for interests in just short notice. Ponzi plans were controlled by a main administrator, who utilized the
cash from new, approaching financial specialists to pay off the guaranteed original returners. That plan made the operation appear to be productive,
despite

Ponzi Scheme
Ponzi Scheme
Corporate Finance
A Ponzi scheme is an illegal business practice in which new investor's money is used to make payments to earlier investors. In many Ponzi schemes,
the fraudsters focus on attracting new money to make promised payments to earlier–stage investors and to use for personal expenses, instead of
engaging in any legitimate investment activity. The returns are repaid out of new investors' principal, but not from profits. This can continue as long as
new investors line up with cash, and old investors don't try to withdraw too much of their money at once.
Ponzi scheme is named after Charles Ponzi, known as the Father of the Ponzi scheme and the infamous swindler, who paid out returns with other
investors' ... Show more content on Helpwriting.net ...
He had started his business with a loan of $200, but within months he had two offices in Boston with a staff of dozens of employees processing
sales, and he bought a modest mansion for $35,000. Of course, there were no actual profits, Ponzi had not actually bought the IRCs, and he paid
early investors with the funds derived from later investors. This only worked well for him because of the rapid payments made to investors. People
saw what he could do and they wanted in, so he was selling the IRC's quickly and convincing people to reinvest their funds, he was able to postpone
his financial obligations even longer. By the time the scheme collapsed his income was estimated at $1M per week, and late coming investors were
defrauded of between $7 – $15M. The downfall started from some investigative journalism, this led to the District attorney getting involved and Ponzi
being charged. Most of Ponzi's gains were seized in an involuntary bankruptcy hearing, and what little remained was spent in his subsequent legal
battles. Ponzi's scheme was exposed by newspaper reports in 1920 and despite his claims of innocence, a federal audit confirmed his operation was
bankrupt, owing almost $4 million or more to investors. After investigation, Ponzi was charged with 86 counts of mail fraud and sentenced to five years
in federal prison, and while incarcerated on federal charges he

Bernie Madoff's Ponzi Scheme
1.Explain how a Ponzi scheme works (5 pts).
A Ponzi scheme, one example of a white collar crime, is typically considered to be a fraudulent investment operation in a usually made–up or
nonexistent business. A Ponzi scheme works by a primary schemer (e.g. Bernie Madoff) beginning with one set of investors– these investors are
encouraged by the promise of a quick and easy pay/return on their investment and success. They then invest a sum of money (usually a large amount) in
the schemer thinking that they are going to 'get rich' off of the investment. On the other hand, they are being paid fake returns, which comes from the
money of a second set of investors. To keep the system flowing the schemer must continue to attract new investors or levels... Show more content on
Helpwriting.net ...
Casey met with a group of fellow investors and heard about the astonishing numbers Madoff was making. He quickly became skeptical of the
investment because he was creating numbers that no one else could imagine. He went to Harry Markopolos, a mathematician for help. Markopolos
looked over the numbers and almost immediately stated that this was a fraud, even a Ponzi scheme. He then created a math model to reproduce the
earnings of Madoff – he could not recreate his numbers. He then went to the SEC to report Madoff and after several attempts and numerous years they
agreed to investigate. They agreed that no one could get those return rates with both increasing and decreasing market rates but instead of investigating
Madoff for a Ponzi, he was investigated for front running. Madoff was investigated and found not guilty, while the Ponzi idea was completely
dismissed. This allowed Madoff to continue his fraudulent operation for a few more years. His ultimate ending came in 2008 when the Stock market
crashed. When this happened people became panicked and wanted their money back from Madoff – because he had pocketed it, he was unable to
return the money to investors and he was finally forced to admit to his whole

Bernie Madoff's Ponzi Scheme
A Ponzi scheme of this size and magnitude probably won't happen again. The Ponzi has been around since the beginning of time. It has been
documented to be in existence since 1920. The Security Exchange Commission (SEC) has put several detectors in for the Ponzi scheme. This should
be labeled a white–collar crime but should be punished as a blue–collar crime. The only to ensure that this does not happen again is to get rid of all the
thieves in the world. That will be difficult task. A Ponzi scheme like Bernie Madoff had more elements than usual. The (SEC) did not investigate
Bernie Madoff because of his impeccable business history. Bernie Madoff already had a successful investment firm. The (SEC) felt that this could not
be happening. The chance

Bernie Madoff Ponzi Scheme
Ponzi schemes are named after Charles Ponzi who started the pyramid formation with an investment of stamps. There have been many Ponzi
schemers and Bernard Madoff is one of the Ponzi schemers who created the biggest scandal in the world. He was running his firm, Bernard L.
Madoff Investment Securities LLC, using a Ponzi scheme. According to the CNNMoney (Smith, Aaron., 2013), no one knows when Bernie Madoff
started his Ponzi scheme towards people because he first claimed that he started in 1987, but later he said that it began in 1992, while some reports
claim that he started when he first started working on Wall Street which was in the 1960s. I personally think that he probably used the Ponzi scheme
for more than 20 years since he got arrested... Show more content on Helpwriting.net ...
Not only them, but also other people were involved in this case such as his family members and employees. There were also some companies and
investors such as the Wilpon family that owns the New York Mets and JP Morgan who overlooked the Ponzi scheme even though they knew what
Bernie Madoff was doing. Currently, a lot of Bernie Madoff's previous employees are having difficulties in finding jobs, and the Wilpon Family
and JP Morgan have been charged to pay astronomical figures of compensation. A lot of people also want the Wilpon Family to sell the New York
Mets as well. I think that the legislation that was already in place worked how it's supposed to, and in this case the outcome fits the crime. It is
really shameful to say, but if this happened in Korea, I think that they might be able to get away with it forever, or even if they did get caught they
would not need to be charged as harshly. However, the one thing that makes me question the legislation was in regards to his wife. Even though
Bernie Madoff insisted that his sons and his wife were not involved in the case, I personally think that at least his wife had some idea about what was
going on in the company because she was participating in a lot of unofficial investment meetings with Bernie, such as parties and golf

Bernard Madoff's Ponzi Scheme Essay
TO:Dr. Anthony M. Sadler
FROM: Noora Al–salmi
SUBJECT:Bernard Madoff's Ponzi Scheme
DATE:20 April 2017
This memo aims to discuss the most important facts about the Bernard Madoff's Ponzi Scheme and demonstrate my position in this case study.
Bernie Madoff is a very well–known criminal that committed the biggest fraudulent scheme in U.S. history. He was an active member of the
financial industry. He started his own company in 1960 and helped launch the Nasdaq stock market. He served as a chair in National Association of
Securities Dealers. He got caught in December 2008 and was sentenced to 150 years in prison for his crime. Also, five of Madoff employees who were
pleaded guilty for helping Madoff conceal his fraud ... Show more content on Helpwriting.net ...
The suggested alternative course of action for upper management was, of course, being open and clear with investors and applied the best practices
in operations. It would have been easier for him to do the right and the ethical course of actions. He could take the money from the investors and
take portions for himself, then put some in a real business operations. This way would have benefited him and his investors at the same time.
However, He was very greedy and couldn't stand waiting for actual and reasonable returns out of real business operations. He saw a fast track to be rich
and he took

Globalization Of The United States
The United States is often defined as a "capitalist" economy, a concept created by a German economist and social theorist Karl Marx, to define a
system in which a minor group of persons, who regulate large quantities of capital, create the most important economic decisions. Sometimes
capitalism is known as a "global system of abuse" because at times capitalism is centered on violence and submission. Capitalism puts enormous
pressure on society to make capital. In the United States have seen a lot of fraud through the years, as well as other high profile crimes in which the
fraud formed part. The most feared crime by companies in developed countries is fraud, even compared to other crimes such as theft and sabotage. Far
from being under ... Show more content on Helpwriting.net ...
Ponzi fooled thousands of investors, he promised huge earnings on international reply coupons, which could be acquired in one country and used for
postage stamps in another country. The income would be the difference in price between the two countries. He converted a millionaire in a few
months, but the scam took him down. Some parties started to investigate the accounts because there weren 't enough international coupons for his
investment strategy to function. Actually, Ponzi was paying his investors with newer investors ' money, staying with a huge quantity. In a few months,
Ponzi acquired $20 million, equivalent to $222 million in current dollar values, and six banks crumbled. On the other hand, Bernie Madoff, a
respectable financier, used the famous Ponzi scheme, which attracts investors in by warranting high revenues. As mention before, Ponzi schemes
consisted in using money from new investors to pay off the guaranteed returns to the older investors. This makes the investment look valid and
profitable, even that was not generating any profit. In Madoff 's case, things began to complicate after clients demanded a total of $7 billion back in
returns. Unfortunately for Bernie, he did not have enough money to give back to his investors. According to CNNMoney, he only made $20 billion,
even though he cheated investors out of $65 billion.
According to the author George Robb in his article "Before Madoff and Ponzi: 19th–Century

Charles Ponozi Research Paper
Investment fraud is a maneuver where the operator or individual, pays returns to the investors from fines paid to operators from the new investors, then
from the profit earned by the operator or the individual. The Ponzi scheme was an investment fraud were financial returns were not available through
traditional investors. The scheme did not invest funds from the individual victims, Ponzi paid dividends which is not a company expense: to initial
investors using the funds for future investors.
The white–collar offender known for the Ponzi Scheme was called Carlo Ponzi, later known as Charles Ponzi, Charles P. Bianchi, or Charles Ponzi. His
full birthname was Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi. Born in Parma, Italy, raised by his parents Oreste Ponzi and Imelda. Shortly after
... Show more content on Helpwriting.net ...
He come to the United States at the age of 21; on the S.S Vancouver arriving in Boston, MA. When Ponzi came to the United States he only had two
dollars and fifty cents to his name. Just like most of the immigrants he came over to the United States with absolutely nothing. He was like any other
young man, he moved to different residences though out his adolescent years and worked different professions. He perused many occupations such
as a server, dishwasher and he was a clerk. Even when he was a server he was starting to commit white collar crime. Ponzi was stealing from the
company, and he was so desperate that he even would give the wrong amount of change back to his costumer. Eventually all of the occupations that he
perused, he ultimately failed at; later becoming a bank teller.

The Ponzi Scheme versus the Madoff Scheme
Schneeweis &Szado (2010, p.9) suggested that ffinancial fraud in general and Ponzi schemes in particular continue to maneuver investors. A Ponzi
scheme is frequently described as a securities fraud in which the investment manager is in fact taking money from new investors to fund redemptions
from current investors. These strategies are often discovered when new investors cannot be found to offset redemptions from current investors. The
Ponzi method received its name from Charles Ponzi, who marketed an investment based on managing the International Postal Reply Coupons. Ponzi
suggested that an arbitrage opportunity existed because he could exchange U.S. dollars into the necessary foreign currency, and use the foreign
currency to purchase postal reply coupons. The postal reply coupons could be redeemed for U.S. postage stamps, which could then be sold for U.S.
dollars. Ponzi promoted unusually high returns to investors when in fact he simply used the new investment to pay of the previous investors. While
the scheme soon collapsed, there are similarities between him and the Madoff scheme. For example, Madoff sold primarily to the Jewish community
and also Ponzi sold primarily to the immigrant community of the North End of Boston, to which he belonged. Along with that, the validity of
Madoff's strategy was a subject argued by the public press (Barron's) as well as by individuals (Markopolus) on the grounds. Comparable to Ponzi's
investors, Madoff's investors, have received

A Ponzi Scheme Essay
A "Ponzi scheme" is defined by the SEC as investment fraud, that incorporates remuneration of professed returns to old investors from funds
contributed by new investors. It could be thought of as a systematic process, requiring consistent fraudulent action and deceitfulness. Usually Ponzi
schemes are generally short in length, but Madoff's lasted for almost 30 years. In simpler terms, a Ponzi scheme is built upon the idea of robbing Peter
to pay Paul, when in essence no real investment is made (Moaf.org). A Ponzi scheme promoter attempts to appeal to new investors by promising high
returns with little to no risk involved. The new money obtained from the unfortunate and hopeful investors is then disbursed to it's earlier constituents,...
Show more content on Helpwriting.net ...
According to the Museum of American Finance, Charles Ponzi would bestow dividends from his notes to earlier investors with funds accrued from
subsequent investors. Of course, then the subsequent investors required a pay out, creating the necessity of Ponzi to acquire more investors to cover
his more recent accumulated liabilities.
As with most Ponzi schemes scheme, the more inflated the necessary returns grew the closer to self destruction the scheme becomes. Ponzi had to
come up with a credible investment postulation. He claimed to be involved with a profit–yielding arbitrage of purchasing international postal reply
coupons (IRC) in other countries and then exchanges them at face value in the United States, therefore making a profit. Arbitrage consists of acquiring
an asset in a particular market at a discount and then subsequently selling the same asset in a different market for a higher price, thereby making a
profit off the transaction (SEC.gov). It wasn't until Clarence Barron reported, "160 million international postal reply coupons would be needed to cover
Ponzi's investments and only 27,000 were in circulation (Fraudnewsamerica.com).
Just as Charles Ponzi's scheme operated, the essence of Bernard Madoff's Ponzi scheme was quite similar. Madoff's scheme consisted of generating
returns for its investors, by way of cash deposits compiled from its new investors. As long as new investments were consistently made, the Ponzi
scheme can continue to operate and

The Ponzi Scheme To Make History: An Informative Speech
The Ponzi Scheme to Make History: An Informative Speech Presented in Comm 1100 SEC 24d
Introduction
I.Have you ever heard about the biggest Ponzi scheme that had about 65 billion dollars under management?
II.A Ponzi scheme is a type of fraud that works by paying back quick, usually in high returns to investors using money invested by other investors.
III.To be aware of the biggest Ponzi scheme, and to understand how it works.
IV.Today I will talk about the biggest Ponzi scheme in history which was run by Bernie Madoff. I will answer how he began and made it successful,
how it effected investors and other people, and what was the outcome of it.
Transition: How did Bernie Madoff start off?
Body
I.After graduating from Hofstra University with a bachelor's degree in political science in 1960, Bernie and his wife Ruth founded the investment firm
... Show more content on Helpwriting.net ...
However, things went downhill when his clients requested $7 billion back in returns and Bernie was unable to pay that (Collins, N/A).
IV.The overall outcome was him cheating clients out of $65 million. Not only does Bernie have a 150–year sentence, but five of Madoff's employees
and his accountant and layer were found guilty for their part in the Ponzi scheme, also facing up to 30 years in prison for their role (Yang, 2014).
References
Berman, K., & Knight, J. (2009). What Did Bernard Madoff Do? Retrieved February 21, 2016, retrieved from https://hbr.org/2009/06
/what–did–bernard–madoff–do
Collins, D. (n.d.). Bernie Madoff's Ponzi Scheme: Reliable Returns from a Trustworthy Financial Adviser. Retrieved from http:/
/dcollins.faculty.edgewood.edu/pdfdocuments/Madoff Case.pdf
E. (2009, May 12). Timeline. Retrieved February 21, 2016, from http://www.pbs.org/wgbh/pages/frontline/madoff/cron/

Yang, S. (2014). 5 Years Ago Bernie Madoff Was Sentenced to 150 Years In Prison
– Here's How His Scheme Worked. Retrieved February 21, 2016,
from

Bernie Madoff Research Paper
Bernie Madoff was convicted of $65 billion in a Ponzi scheme investment that started in the early 1990s (Ferrell, Fraedrich, & Ferrell, 2013). Ponzi
schemes were named after Charles Ponzi, a man who told investors he could make them money by swapping out international coupons for more
expensive stamps in countries where they were more expensive and have a higher value (Ferrell, et al, 2013).
When Madoff started his proprietorship, Madoff Securities, in 1960, serving as a "wholesaler" between institutional investors (Ferrell, et al, 2013). He
moved Madoff Securities from Wall Street to Third Avenue so he was able to make changes electronically easier. Serving as chairman on the
NASDAQ, a seat on the government advisory board, and throughout his investment career of networking, Bernie became very well trusted and gained
the likes of new investors.
Promising 10 to 12 percent of returns for investors, Madoff was able to have wealthy customers. He found potential clients from country clubs,
relationships with intermediaries, churches, charities, universities, and banks with his promise of low risks and high returns. ... Show more content on
Helpwriting.net ...
He was a greedy man who knew he was operating a Ponzi scheme and created phony books for the business. Madoff only hired people who did not
have any knowledge of the finance industry. He controlled how he made his money, as well as, how he controlled it by not charging fees for
services. Most of the people that worked with him were family members. While working on Wall Street and with the New York Stock Exchange, he
was becoming more successful working with his brother, Peter. Peter helped develop the technology programs for buying and selling at the best prices
and took over the organization's security business (Ferrell, et al, 2013). Soon after, Madoff's wife, niece and two sons were

Was Madoff Able To Conceal His Fraud
There are many peculiarities in Madoff's world that contributed towards making his mind's outcomes so very suspicious. The answer to how Madoff
was still able to conceal his fraud can be explainable through his techniques, methods, and darkly hidden tricks that he has been demonstrating
throughout his long period of wrongful criminal deception. To begin, the operations that are being undertaken on the seventieth floor are considered the
center of Madoff's world. Specifically, the information technology department that has a significant programming ability in data innovation and
software, which Madoff's business mostly depended upon. Moreover, through his management information system, he managed to create false trading
reports that were

Allen Stanford 's Ponzi Scheme
Allen Stanford's Ponzi scheme is considered to be one of the top grossing Ponzi schemes that have been at the forefront of white collar crime. As
stated on the U.S. Securities and Exchange Commission website, "a Ponzi scheme is an investment fraud that involves the payment of purported
returns to earlier investors by the contribution of new investors that promises to generate high returns with little or no risk" (Sec.gov). These schemes
take advantage of people who put their faith in the offender out of trust or any other personal reason and in the case of Allen Stanford it is no different.
Allen Stanford used his status that he had built throughout his life to take advantage of many people through the use of Certificates of Deposit.
His alpha male persona had built an empire by defrauding individuals out of what has been reported up to $6 billion and some sources have
estimated up to $8 billion. This paper will discuss how Mr. Stanford went from king to prison in a 20 year span. Allen Stanford was born in Mexia,
Texas to a lower middle class family. Stanford's parents eventually divorced and he moved to Fort Worth, Texas. Tim Elfrink of the Broward/Palm
Beach New Times stated that people who knew Allen Stanford at a young age said that he was always out to make a quick buck and he was well
known for this. Some of his first ventures into making money were selling firewood (Elfrink, 2009). Bob Wright, an acquaintance of Stanford's from
back in Mexia, Texas

Ponzi schemes are fraudulent investments in which false returns from a new investor are given to existing investors. The facilitator of a Ponzi scheme
lures new victims in by promising high return and little to no risk investments. Most schemes are driven by the con artist creating a faГ§ade. Con
artists create these facades by bringing in new investors and promising payments, to build up the same facade so they can continue to create the
appearance of a lucrative, genuine business to invest in (Ponzi Schemes, 2013). Ponzi scheme is derived from a man named Charles Ponzi. Ponzi
orchestrated the first recorded fraud of that kind in the 1920s (Ponzi Schemes, 2013). Although Charles Ponzi was the creator of the Ponzi scheme,
Bernie Madoff could be deemed the master of the Ponzi scheme, primarily because of the grand total he defrauded his investors out of. At a total of
amount of fifty million dollars, Madoff's fraud became the largest Ponzi scheme in history. After... Show more content on Helpwriting.net ...
Madoff was able to run his scheme right under the noses of the U.S Securities and Exchange Commission. CNNMoney states that "He told
CNNMoney in an interview earlier this year that it all started in 1987, but he later said the scheme began in 1992. Some reports say Madoff's epic
crime may have started as early as Madoff admits to the scheme beginning in the 1987, and others have said that Madoff's masterpiece started when
he first began his lifelong career on Wall Street. Once Madoff was finally caught he was sentenced to 150 years in prison. This major event changed
the Ponzi scheme for at least the near future because once he was finally caught the U.S Securities and Exchange Commission and other federal
agencies can study the case. By studying the case they can find the "holes" in their system that Madoff and potentially other Ponzi schemes creators
were able to pass through

Madoff 's The Great Ponzi Scheme
"Mr. Madoff 's crimes were extraordinarily evil." "The breach of trust was massive. "I simply do not get the sense that Mr. Madoff has done all that
he could or told all that he knows. "These are all quotes given by the US district attorney Denny Chin that give a mere glimpse into the horrible
impact that Bernie Madoff has had on 21st century American society. Madoff cheated investors worldwide in the biggest Ponzi scheme in American
history stealing over sixty five billion dollars from his clients .His enormous ponzi scheme was essentially evil genius and because of this incredible
con Madoff has become the face of fraud in the 21st century and someone who exemplifies the dark side of wall street. This is shown through the
incredible... Show more content on Helpwriting.net ...
So when Charles ponzi found a way to make profit by buying coupons from other countries and selling it here the result was profit which he said he
share with his investors around 50 percent in 50 – 90 days. However eventually he was caught and was sentenced to 14 years in prison after owing 7
million dollars adjusted for inflation that is over 82 million dollars. Madoff seemingly took inspiration with ponzi and used a similar hook; both
madoff and ponzi would use their immense charm and use of diction stressing words that would intrigue the customer while being patient and
"exclusive". An example of their prowess would be if you decided to go to a part and you meet Madoff who suddenly has taken a liking to you. To
him, you seem sharp and able to recognize a gold mine when you see it. He says he only offers this tip to his closest friends, but he 's willing to
make an exception for you. He says if you get in on this opportunity now, you 'll be an early investor in the next big thing. You 've intrigued by his
offer and decide to join. That is how Madoff would trap you. As humble beginnings go Madoff started out as honest as it gets working as a stockbroker
and trying to foster a future for himself through

Essay on Unsustainable Debt
Unsustainable Debt
Many ordinary citizens today in developed countries such as Canada acknowledge the abject poverty affecting citizens of various African countries and
other undeveloped nations. However, exactly why these countries are in this position appears to be a mystery, despite many cash grants, relief efforts,
and aid are delivered to these countries by various Western organizations amidst great media attention. In addition, it also seems natural that such
undeveloped countries should have a net flow of capital moving towards them from wealthy industrialized nations such as Canada. On the contrary, a
net flow of money has actually been directed towards the industrialized nations and various financial institutions from ... Show more content on
Helpwriting.net ...
The origins of the debt crisis lie in the beginning of the Cold War era. An era in which the two superpowers of the world sought to gain alliances with
as many nations as possible. One such method of attracting allegiance was to provide military aid and economic aid
(termed defense support by the US)[5] to countries such as Taiwan and
South Korea that lay directly in the path of communist efforts. One such individual involved in defense support projects was Secretary of
State John Foster Dulles, who quickly realized what a disadvantageous situation the American government had found themselves in by offering only
military support. Dulles stated that he was being forced to defend the interests of the US with one arm tied behind his back; namely the nations
economic strength. US military power – the other arm – was not enough and was indeed largely unsuccessful[6].
The Development Loan Fund, founded, sponsored, and funded by the
Central Intelligence Agency's Center For International Affairs at
Massachusetts Institute of Technology, resulted primarily from the efforts and concerns expressed by Dulles[7]. Milikan Max, a former CIA officer
and the director of the Center For International Affairs
(CENIS), along with colleague Walt Whitman Rostow, a senior State
Department official, held the belief that "Гўв‚¬В¦ to

Wall Street Has Been Performing Criminal Acts Ever Since
Wall Street has been performing criminal acts ever since its inception, and many of these schemes have become infamous public events. Scandals have
included fraud, blackmail, and even outright stealing of money. These schemes have involved different techniques over Wall Street's history, many of
which fundamentally changed how the world deals in finance and regulates the economy. What most do not realize is that when someone commitsfraud
for billions of dollars, millions of people around the world are affected due to having invested in false promises. These scandals have also had a
major effect on the American people, and it is important for people to know about Wall Street's darker hours. Wall Street began in 1792, which was
very early ... Show more content on Helpwriting.net ...
But Duer's information was unpredictable at best, and began to lose money rapidly, even taking out money from the treasury in order to cover his
losses. Once the public realized Duer's investments were fake, a public panic ensued which caused the first ever financial panic in America. After
inflation, over 50 million dollars were lost which, while today may not seem a lot, one has to realize that the United States had only a fraction of its
population and land that it does today. Duer set the stage for Wall Street scandals to come, and they would only get bigger as the years went by.
The next big scandal came in the mid–1800s, at which point Wall Street had already become the most important financial institution in the Western
world, and men such as Daniel Drew had become one of the richest men on the planet. But Daniel Drew's success did not come legally. The
technique Drew used was what is today known as a 'pump and dump' scheme, where a large portion of a company's stock is bought before publicly
decrying the company ("Pump and Dump," n.d.). Negative publicity for the company would cause the stock's price to tumble, and Drew was able to
'sell short' the stock for massive returns. Selling short is when an investment is made with an expectation that the price will go down, and where profit
is only feasible in extreme cases where a stock fails ("Selling Short," n.d.). The return on these investments caused Drew to be one of the richest men
on Wall Street until Drew went

The Ponzi Scheming
Before the exposure of his scheme, Bernard L. Madoff Investment Securities seemed to be a normal investment firm (Bandler & Varchaver, 2009).
Bernie was a well–respected in the financial industry, evidenced by being named chairman of the NASDAQ and by being asked to testify before
congress (Bandler & Varchaver, 2009). Bernie's brother, Peter served as the head of compliance in the legitimate trading side of the firm. While
Peter was technically savvy, Bernie was anything but (Bandler & Varchaver, 2009). His computer was set up to report financial news and nothing
else (Bandler & Varchaver, 2009). He didn't have an email account, and it was said that "he could barely turn his computer on" (Bandler &
Varchaver, 2009). At the next level of the firm were Bernie's sons, Mark and Andy (Bandler & Varchaver, 2009). Andy was seen as the more
intellectual of the two, but mostly unapproachable (Bandler & Varchaver, 2009). He had a good understanding of the complex issues facing the firm
(Bandler & Varchaver, 2009). Mark, on the other hand was more of a charismatic leader. He has been described as "easygoing and low
–key" (Bandler
& Varchaver, 2009). Not surprisingly, like a typical family owned and operated business, many of the employees were long term employed with several
staying for ten years or more (Bandler & Varchaver, 2009). Seemingly, people enjoyed working for Bernie (Bandler & Varchaver, 2009). Evidence can
be seen of his compassion: In 2002 a rookie trader

Madoff Fraud Research Paper
The overall problem is trust. Humans are naturally bias and judgmental and this is where the problem begins. People tend to trust a person more if
they are educated, drive a nice car, and are well groomed, over a person who looks average. The ponzi scheme, that everyone has learned to hate,
used image and wealth to get over on business corporations, large and small investors, and regular people. Ponzi schemes uses appearance and finesse
to get investors to continually reinvest their money with no return. Usually the head of the ponzi scheme is someone trust worthy like Madoff. "Much
of the reason why Madoff fraud went so long unchecked likely had to do with his respectability and reputation for being a market genius"(511). Once
again, trust

The Charles Ponzi Scheme
Ponzi scheme was first known as robbing Peter to pay Paul, meaning you borrowing money from one person or thing to pay back the money you
borrowed from someone else. In a classic Ponzi scheme, investors are informed that they will earn unusual high returns because the con artist
extraordinary skills and master plan the investors believe in them. However, there was only one known Ponzi scheme before Charles Ponzi came
along and it was committed by William Miller in 1899. William Miller a New York native was jailed for 10 years for scamming investors out of
money. The Ponzi scheme got its name from Charles Ponzi, an Italian immigrant who in 1919 led investors to believe that they could earn a 50 percent
return profit in as little as 90 days. Ponzi would use the revenue coming... Show more content on Helpwriting.net ...
He was not able to continue to pay old investors because the money flow stop coming and you can only lie to individuals for so long. Eventually,
rumors started the business went down and Ponzi business was exposed as fraudulent. Ponzi was convicted and jailed in 1920 for financial fraud.After
the Charles Ponzi scheme, there were several others. These schemes were being committed by churches, lawyers, and businessmen it appeared that
people all over were fraudulently taking investors' money. However, the greatest Ponzi scheme of all times was committed by Bernard (Bernie)
Madoff; they even considered calling it the Madoff scheme. Bernie Madoff was a well–known and much–respected financer. Bernie Madoff was a
"traditional low– profile investment professional, former chairman of the NASDAQ stock exchange, and an occasional consultant to the Securities and
Exchange Commission on matters of investment regulations" (Mc–Graw Hill, 2016, p. 141). Bernie Madoff pulled off the biggest scheme of all times.
Bernie Madoff persuaded thousands of investors to invest their savings. He deceitfully promised these investors steady and consistent proceeds in

The Ponzi Scheme and Mental Illness Essay
The Ponzi Scheme and Mental Illness
December 26 1919 Charles Ponzi borrowed $200 to buy some office furniture. By January 1920 he then began telling the people of Boston how he
could buy stamps and sell them overseas and give them a 50% return on their investment in 45 days and 100% return in just 90 days. The people
came so fast he was able to pay returns of 100% in just 45 days. The word spread quickly and more investors came. Soon Charles had two offices and
hired people to take orders for stamps. Shortly thereafter Charles was taking in as much as $1 million a week.
Charles was quoted as saying. "A huge line of investors, four abreast, stretched from the City Hall Annex . . . all the way to my office! . . . Hope and
greed could ... Show more content on Helpwriting.net ...
You might think the investors that bailed out early made out but all of their profits had to be returned to bankruptcy court to pay back the millions
still owed. This still wasn't enough to pay back all the money owed. Investors only received back $.37 for every dollar they invested. (SSA, 2008) A
far cry from 50% profit. August 1924 Ponzi was released from jail but within months he was back in jail on indictments that the state didn't get him on
before. He was sentenced to nine years in prison but remained free during his appeal. (Zuckoff, 2005)
Even this didn't stop Ponzi. During this time Ponzi and his wife moved to Jacksonville Florida and began a new scam. This time it was land. He
borrowed money from friends. Opened a company called Chatpon Land Syndicate. Which play on the name Charles Ponzi. He began to buy up cheap
land in Jacksonville. Most of it swampland, and began selling of lots for nearly 500% profit. (Zuckoff, 2005) When Florida found out who he was
Massachusetts and Florida teamed up to shut him down again. He was then sentenced to one year in jail for violating securities laws.
Ponzi faked is death and sneaked on to a ship as a dish washer. He eventually told someone who he was and was captured several months later in
Galveston Texas. Ponzi served 9 years in prison and was deported to Italy October 7 1934 with only $70 in his pocket.
Ponzi died 17 January 1949 in Brazil. He had $75 to his name. (Zuckoff, 2005)
In 1957

1.How did trust and greed concepts intertwine within the Bernie Madoff Ponzi scheme? The majority of Wall Street trusted Madoff, and this included
the biggest names on Wall Street. This is because of the 47–year career on Wall Street that Madoff had, and the reputation he built with business
techniques that streamlined the execution of trades for other investment companies. His reputation was so respected that his firm was responsible for
handling more trading volume on Wall Street than any other firm aside from Nasdaq. Madoff was so trusted and respected that at one point he was
made chairman of the exchange. Greed was intertwined with this trust through the fact that no one cared enough on Wall Street if the money continued
to flow, investors... Show more content on Helpwriting.net ...
What is a Ponzi scheme and several examples that have occurred within the recent years. A Ponzi scheme involves the wooing of potential investors
through "too good to be true" promises of returns on their investment. A skilled conman named Charles Ponzi is who the scheme is named after, and
the Ponzi scheme entails the investors being repaid from the investments of new investors until old investors attempt to withdraw all their money at
once and new investors can't funnel money into the scheme fast enough. The scheme then falls under its own weight. Scott Rothstein was convicted
of the 4th largest Ponzi scheme in history with an estimated 1.2 Billion dollars defrauded from investors. The scheme was predicated upon
purchasing fabricated "structured settlements, which involved people selling large settlements in legal cases for lump sums of cash. How likely is it
that Madoff's sons that were employees of the firm, knew nothing about the fraud? Madoff's sons were highly suspected of being aware of the fraud,
but they both adamantly denied this, and charges were never brought because one son killed himself while the other died of cancer. A federal
investigation was on the cusp of charging the son who died of cancer with tax evasion resulting from the Ponzi scheme before his death this year it was

Ponzi: The Boston Swindler Essay examples
Received an A– on this paper, United States History, DePaul University, put almost twenty hours into, most I write in four–five hours, very proud of
this piece.
Throughout history, the swindler has financially plagued society. Whether it is the get rich quick scheme or the carnival worker's impossible
challenge, people have been cheated out of uncountable sums of money. In the 1920's a man named Victor Ludsig, posing as a French official, sold the
Eiffel Tower to a gullible scrap ironworker for $50,000. Even today con artists are thriving using the Internet to borrow from Peter to pay Paul. This is a
scheme made famous by a crook so successful that his name now graces the age–old fraud, the Ponzi scheme. Webster's Dictionary defines ... Show
more content on Helpwriting.net ...
Since colonization, Boston had been infested with so called entrepreneurs seeking to interest small investors by promising big profits. High wages in
industrial centers, the climbing cost of living, and below–par quotations on Liberty Bonds, helped make New England a fertile field for those who
promised quick and big returns. Many agents found their best argument was that while old banking houses made small returns to their depositors, the
banks themselves were able to make enormous profits by frequently turning over their depositors money. Some agents proposed that small investors
share in these big profits by permitting their savings to be invested for them.
Ponzi adopted from contemporaries the notion of sharing enormous profits with investors, adding his own twist: trade in postal reply coupons. This
idea, the keystone of his swindle, was made more plausible with tales he spun about how he received the brilliant inspiration. On one occasion he said
that in August of 1919, when he was considering issuing an export magazine:
I wrote a man in Spain regarding the proposed magazine and in reply received an international exchange coupon which I was to exchange for American
postage stamps with which to send a copy of the publication. The coupon in Spain cost the equivalent of about one–cent in American money, I got six
cents in stamps for the

The Case Of Bernie Madoff
On December 11, 2008, a Wall Street investor named Bernie Madoff was arrested for confessing to one of the biggest Ponzi schemes in history.
Before that day, many people had never heard of Bernie Madoff or perhaps may not have even realized their life savings were invested through his
firm. To the casual observer, the arrest was just another dirty banker being taken to court for his actions; but in reality, the arrest was devastating
to financial institutions, government regulators, and the personal wealth of thousands of businesses, charities, and individuals. In all, Madoff
defrauded investors of $20 billion. Having been a well respected leader and trusted advisor on Wall Street for years, friends, family, and customers
never questioned his tactics even though the red flags had always been there. In the end, many people blamed the government for lack of
regulation on Wall Street, but the truth is that everyone involved from the investment firms to the personal investors chose profit over due
diligence. Bernie Madoff was successful for so long because he kept a high level of secrecy in his firm. If a question or a concern was brought up,
he instead focused on his many years of success. In an interview with Frontline, Michael Bienes, a CPA who fed Madoff clients during his early
years, explained why so many people never questioned Bernie Madoff. When asked a question, Madoff would answer in a way to confuse even an
expert. As was the sentiment of many who worked with

Case Study Of Bernard Madoff's Ponzi Scheme
1.Introduction
Today financial markets represent a significant part of the daily life of all of us, but it has not always been this way. Financial markets are a place
where money is made, only when people play their cards right, because in many cases people lose by investing their money in the wrong company
or buying the wrong stocks. As the saying goes: "You may win some but you will most certainly lose some." But mostly people use the financial
markets to make money, or at least to try to make money. In today's market people trade stocks or buy them. When people think their stock increased
in value they will sell it to make a profit. If this turns out to be successful, it can make people think nothing can go wrong and it could make them
greedy, thy will always want more.
That is what this paper will explain. This paper provides a case study on Ponzi schemes and ... Show more content on Helpwriting.net ...
Economic model
This part of the paper will focus on the case of Bernard Madoff's Ponzi scheme. Bernard Madoff had a branch of his business structured as a hedge fund
; Bernard Madoff himself was the hedge fund manager. A hedge fund is an investment portfolio that uses aggressive strategies with the goal of
generating high returns.
Normally those returns are paid by the profits hedge funds make as a result of their beneficial investments. But hedge fund managers don't always
invest in high–risk assets. They may also choose to invest in risk–free assets. Those give a constant return denoted by r. Let the investment be denoted
by D. The Assets Under Management (AUM) are represented by W. With this information we can assume that the asset
–capital ration by ПЂ= (W–D)
/W. Using a certain investment strategy ПЂt, the return on that investment is given by dRt= Ој(ПЂt)dt+ПѓdBt. (where Bt is a standard Brownian
motion; Пѓ is a constant volatility parameter and Ој(ПЂ)is the expected return). This return is used to pay the ROIs (Returns On Investment) to clients
of the hedge fund. This is the normal way of

Ponzi Schemes : Greed In Business Contributions
Trust is extremely important in business transactions. Greed also plays a role in some business transactions. Discuss how these two concepts were
intertwined in this case.
Bernard Maddoff was entrusted by his family, close friends and his close associates, most of which he hired to work in his company. As with many
businessman, positions previously held, are used to persuade others to trust in their business. Maddoff used the "family business" and esteem gained
as the former chairman of the NASDAQ Stock Exchange to convince people to trust him and invest their money with him (Stanwick & Stanwick,
2016). It is a proven fact, trust is essential, when operating or starting a business that involves successfully building clientele, especially when
involving large sums of money. Once trust has been obtained, greed becomes present and links both sides. Maddoff and his investors, both craved to
earn more money than an average investment. Scams or schemes would not exist without greed and is the reason why they will exist for years to come
(Stanwick & Stanwick, 2016).
Describe a Ponzi scheme. Find several examples of other Ponzi schemes that have occurred in recent years.
The Ponzi scheme, named after Charles Ponzi, an Italian businessman turned con artist in the 1920's, who defrauded his investors by using their funds
to pay other investors. "Almost 100 years after Charles Ponzi showed the world how the scheme worked, people are still convinced that the
administrator of the

The Scheme Of Ponzi Scheme

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