Ponzi Schemes : Greed In Business Contributions

Decent Essays
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
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