Bernie Madoff’s Ponzy Scheme - Sample Essays

He also continued: "When a company encourages existing investors to invite other potential investors by rewarding them with money from these new comers, then what do you call that?

Such a model is not sustainable and is a highly risky investment, because once the flow of investors and their funds stop flowing into the scheme, the investors will most definitely suffer unimaginable losses."

Speaking on MMM operations, he said a number of countries around the world have banned this scheme and Nigeria should equally do the same. He said since SEC has warned Nigerians on the activity of this group, it is, therefore, illegal to invest in them, because their model is a typical pyramid scheme.

He explained that the scheme was not licensed to operate in Nigeria, noting that its operations are online based, which can crash or get closed down unannounced. He said it's designed to attract huge traffic and promises unconventional high returns on investment.

Speaking further, Alex-Oni warned: "People have to be careful of such schemes, because they claim to be foreign investor driven with amazing success stories, thus the attraction for the ignorant. The ignorant in this case are usually aware of the risk involved, but the greed in them let them take such risk with the hope to exit before the scheme crashes.

"It is also quite sad that in some extreme cases, some investors actually commit their entire life savings into these kinds of ponzi schemes. People should learn to get creative and innovative through hard work and smart thinking and start creating values and ideas that money will chase. That way, you may start small, but you will think big to grow big the proper way. A warning is enough for the wise."

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Madoff’s scam started through an affinity bunko scam, which led to an enormous Ponzi scheme....

Essay on Bernie Madoff Ponzi Scheme - 785 Palabras | …

And with this recession biting hard and the poor being the hardest hit of all, they would gladly welcome any scheme that offers an easy, stress-free way to get out of poverty and the recession.

In that kind of situation, the people would chose to believe that their only means of survival - MMM - cannot and will not fail. The peddlers of the scheme do not need to do anything more. The people are fully convinced and will cook up all excuses and justifications to continue to put their money in thescheme.

For instance, the manufacturers of tobacco warn people that "smokers are liable todie young". But, does that stop people from smoking? They will tell you that even many non-smokers die young.

Essay about Ponzi Scheme - 859 Words - StudyMode

He was arrested and charged with two federal indictments and eighty-six mail fraud counts. With potency for a lifetime in prison, Ponzi pleaded guilty to the charges based on pressure from his wife, in the year 1920. He received a prison term of five years that was to be served in a federal penitentiary, due to his involvement in instigating one of the largest defrauding schemes in the world. He was later released after a period of forty-two months but was immediately rearrested by the Massachusetts State on charges of Larceny. He had been promised by the Federal courts that his guilty plea would waiver any other criminal charges against him in his concoction of the fraudulent scheme. Ponzi sued the state with claims that it did not have any jurisdiction to charge him, given that he was a state prisoner. In the year 1922, in one of the larceny charges hearings, he was self-represented since he had inadequate funds to find proper legal representation.

Keywords: ponzi scheme, financial risk mitigation strategies, forensic accounting
Bernie Madoff is a well known and not well liked Ponzi scheme fraudster....

Ponzi Scheme - 859 Palabras | Cram

The Supreme Court by tradition doesn't say why it decides to hear a case, instead only laying out the issues to be argued. Even if the high court allows an appeal, the justices probably won't say whether they were persuaded by news this month that JPMorgan tentatively agreed to pay about $2 billion to settle a criminal investigation into whether the bank turned a blind eye to the Ponzi scheme.

May. 2011 Yet another Mormon run Ponzi scheme defrauds fellow Mormons.

Custom Ponzi Schemes: How Do They Do It? essay writing

Using these methods the SEC investigators may not have completely understood the entire Ponzi scheme nor had all the proof required to take Madoff to trial, but they definitely would have possessed a tested framework depicting that there was a need for further investigation. After formulating, testing, and refining the hypothesis, a more formal investigation could take place using the Evidence-Gathering Order methodology []. Using this method, the investigators would have eventually obtained financial records depicting that Madoff was not engaged in actual market trading, but instead was running a vibrant scheme. They would have uncovered that Madoff’s sons, who were also executives at Ascot were not leaders in the fraud and that Madoff was the mastermind leading the effort.

Limits of Free Speech inMormonism.A BYU PhilosophyProfessor fired for writing his opinion.

Berny Madoff's Ponzi scheme - Homework Help

It was definitely a bi-partisan scandal, and both George Bush and Lloyd Bentsen kept the scandal quiet until after the 1988 election, as they both were deeply involved in the scandal, as was their crony Walter Mischer and others. Neil Bush helped loot Silverado Savings, which cost the taxpayers more than $1 billion, and the same people who orchestrated much of the S&L scandal that dwarfed the S&L Scandal. The criminal behavior engaged in by George Bush the First and friends was staggering, and they mainly got off scot-free by using front men and plausible deniability (much of the denial was not that plausible) to dodge the worst of the charges. Corrupt and greedy politicians and regulators also played their part. The focus of this essay, however, is presenting the role that my profession played in it, and how the next scandal that comes along will likely be handled the same way (and was), because the same conflict of interest and invitation to corruption still exists. There was no basic reform in the wake of that disaster. This essay will cover the basics of how the money was stolen from the S&Ls and how my profession abetted it.