Accounting Scandal : The Biggest Ponzi Scheme

925 Words Oct 17th, 2016 4 Pages
Business ethics is an important characteristic of any business since it confirms that the purposes of any firms are achieved in morally acceptable ways. It also certifies that firms perform their moral responsibility towards society. Throughout the past several years, many scandals have rocked the economy and hurt investor confidence. Accounting scandals have become a regular incidence in the American business landscape, which will most likely to haunt other business in the years to come. Since accounting is the basis of all financial reporting, an accounting scandal does not only affect a business butt it also makes the government to rethink about its reforms or introduce new laws to the investors to make the investment market more secure for them. One of the biggest accounting scandal which affected the entire accounting system and even enforced the SEC and the US government to introduce new reforms was Bernie Madoff Ponzi scheme; which have been regarded as the biggest Ponzi scheme in history.
Bernie Madoff was an American investment adviser and stock broker who operated Madoff Investments in an unethically acceptable manner. He used the company as a front to commit a Ponzi scheme which swindled investors of over $65 billion; this is the largest Ponzi scheme ins history. It is believed that Madoff only stole $20 billion from principle investment; the rest of the money was Bernie imagination that he convinced his investors that their investment worth $65 billion. Several…

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