Book Report : How And Smell A Rat The Five Signs Of Financial Fraud

This paper will assess my ability to maximize my personal return on investment with an allocation of $1,000,000. The overall goal of this exercise is to obtain the highest return possible within the next 12 months. I am limited to the following asset classes for allocation of all investments:

Fraud in the financial community is consistently hidden in "style." Since its beginnings in the "great depression," to now, "the great recession" fraud has undoubtedly taking many forms and styles. Subsequently, many non suspecting patrons have been severely damaged as result of this greed and corruption. Many of America's largest and most established individuals are not exempt from this form of style manipulation. As we will soon see, many individuals, including Bernie Madoff, have both the ability and incentive to commit fraud. In today's fast paced information age, fraudulent activities are now becoming more difficult to detect, and even more difficult to prove. To begin, I believe it necessary to show how fraud has affected our current economic state. I will then venture as to the means in which Bernie Madoff committed fraud and the implications on current business prospects.

Bernard Madoff or “Bernie” is considered to be one of the greatest minds to ever work on wall street. With his warm personality and his humble beginnings he made a name for himself in the stock market eventually starting his own securities investment firm under the title of “Bernard L. Madoff Investment Securities LLC”. As it became apparent in early December of 2008 Bernard Madoff had been running the single greatest ponzi scheme ever recorded. Through this thousands of “people, charities, management firms and, banks” (Madoff's Victims). Even though many people viewed him as a great man, it is not possible to look past the fraud that he committed.

Prior to joining PCS Edventures, Mike spent his career in the investment management field, most recently at D.A. Davidson, where he was a Senior Vice President and Portfolio Manager for 18 years. He earned the CFA Charterholder designation in 1994, and was an adjunct faculty member at

With a degree in economics and finance, it is natural he began his career in the financial and banking industry. Eventually, he set up his own business as a financial consultant.

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

He’s a graduate of the University of Florida and a past participant in several leadership development programs including Leadership Okaloosa, the Cox Emerging Leaders program and the Cox Enterprises Mentoring program (both as a mentee and mentor).

He served a board chairman of Monroe Homeownership Incorporation, where they were successfully purchasing over $8 million in homes. Recently he was selected by the organization founded by Dr. Martin Luther King Jr., the Southern Christian Leadership Conference to speak at the 50th Anniversary of the

Tech entrepreneur and real estate investor, Arthur Becker is the current Executive Directors of Navsite, Inc. According to an overview published in Bloomberg, the 66 year old mercurial investor is also the Chief Executive Officer of digital media Distribution Company called Zino, LLC and is the Cofounder of Atlantic Investor LLC. The other designation he holds includes that of advisor to Vera Wang Fashion Company for 7 years. He previously served as Chief Executive Officer at Zinio LLC, Managing Member of Madison Technologies, LLC and Vice Chairman and Director of ClearBlue Technologies, Inc. At Navsite, where Arthur works as Executive Director is a NASDAQ quoted company that offers a host of services, including tech application

An investment firm with the name of J.D.Williams, Inc. helps many of its clients invest over $120 million for the last 40 years. We have many personal investors helping many individuals with their investments. We create personalized plans for our clients depending on their needs. Our company has multiple methods to help its clients with investments. We use many different approaches when it comes to assessing and making an appropriate plan for the investment.

In the year 2000 he also led the firm in integrating the acquired First Security Corporation. This acquisition was worth $23 billion. In the year 2002 he was given the post of EVP for Community Banking division of the firm. After he became the CEO he has also led in one of the largest acquisition of the bank which is of the Wachovia

EXECUTIVE SUMMARYMerrill Finch Incorporated is a large financial services corporation. As a newly hired financial planner for the company, I have been assigned the task of investing $100,000 for a client. The investment alternatives have been restricted to five options: T-Bills, High Tech, Collections, U.S. Rubber, Market portfolio, and a 2-Stock portfolio.

In the last year, approximately $32 billion was lost to various fraudulent activates, and it has increased by 38 percent since 2013. These activates range from minor crimes like Skimming to major ones such as Identity Thief, but they fall under the term Financial Fraud. Financial fraud can be broadly defined as an intentional act of deception involving financial transactions for purpose of personal gain. Fraud is a crime, and is also a civil law violation. Many fraud cases involve complicated financial transactions conducted by 'white collar criminals ' such as business professionals with specialized knowledge and criminal intent. Financial Frauds are dangerous and can cause harm to everyone no matter how prepared you are. They can affect you in great way and leave you with little or money if not stop. There are many form of fraud and they affect many different people, this paper is to inform you in the risk and the different types of frauds there are, and give certain tips on how to avoid them and be safe from them.

After establishment of electronic depository, transfer of shares and process involved in it became simpler. In any IPO, there is a retail portion of IPO in order to encourage small scale investors. Hence there was greed among people to get the maximum of the retail portion in order to earn a higher profit because the big companies’ IPO always had a lower issue price than the list price. Hence a huge margin of profit can be earned from such shares. IPOs of these companies were oversubscribed so as to have a maximum chance of allocation of shares.