The Ketan Parekh Scam: The Crash that Shook the Nation

This court report is respectfully submitted to update the court on the CRA matter regarding Kevonah Renaud-Harris. On 5/25/2017, Ms. Adrienne Harris, mother of Kevonah filed a CRA. On 5/26/2017, this case was assigned to me to complete a Comprehensive Assessment which is due to be completed on or before 8/21/2017.

In order to study how stock prices react to these events, approximate three years of continuous daily stock price are chose, beginning at 17th March 2008 and ending more than three months after the final event at 22nd April 2011. In addition, SHANGHAI Stock Exchange Index (SSE) is adopted as a proxy of the market portfolio.

The majority of people started selling their stocks and brokers sent out margin calls. People throughout the country watched the ticker (stock pricing machine) as the numbers meant their fate. The prices were falling down so quickly that the ticker fell behind. Stunned at the sudden crash, a crowd gathered outside the New York Stock Exchange on Wall Street. Rumors spread that people were committing suicides, but none of them was true. It was a great relief when the panic decreased later as the day progressed. Large sums of money were invested by group of bankers just to convince others to stop selling their stocks. By the end of the day, people started buying stocks at “bargain prices.” On October 24th, double numbers of shares were sold, breaking the previous record. The stock market fell again four days later. An unexpected drop in the stock prices through a large section of the stock market is called a stock market crash. Usually during high economic periods, become greater than their original value, but if this fades; then the market investors would have to sell their stocks at a lesser value. As the stock prices decline, panic sales can set in causing the market to

others, starting a very unwanted political up roar. "When the stock market crashed finger pointing immediately began" (Svaldi). The Crash undoubtedly caused much chaos and

Moreover, the New York Stock Exchange on Wall Street has a significant economic influence as it known to be the leading financial center of the world. Following the attacks of 9/11, it was forced to close down due to security reasons, and wasn’t opened again until September 17. The week that it had opened back, many of the market’s stocks such as DJIA had decreased considerably. All of the markets that people had invested in had to be gradually brought up again as business wasn’t in circulation in the aftermath of 9/11. In 2001 revenue, U.S. stocks lost $1.4 trillion in valuation for the week after its initial opening. The U.S government provided $11.2 billion in immediate assistance to the Government of New York City along with $10.5 billion in early

Lets go back to December 5th, 1996 when Greenspan said “Irrational exuberance and unduly escalating stock prices.” Those words alone triggered markets around the world to decline. The Japanese stock market took a 3.2% plunge and the German market fell 4%. When the stock market opened in the United States, the New York Stock Exchange went down 145 points in 30 minutes.

Black Tuesday, while being the pivotal occurrence of the stock market crash, was preceded by earlier days which pointed to an inevitable drop in the Dow Jones Industrial Average. Such days yielded greater drops in the DJIA, however they had not

This common outbreak of speculation caused about three main financial problems. First, this sudden stream of money going into the stock market caused the share prices to inflate, which caused the actual stock’s

In the last three months of 2008, under the general decline in the global stock market, numerous Asian stock markets were in free fall. The key stock index such as Nikkei 225 in Japan, Hangseng in Hongkong and Sensex in India suffered significant drops. (Rose & Spiegel, 2009)

First signs of economic trouble were shown when steel production, house construction, and car sales went down in early 1929, but very few people noticed this as a problem at the time. In March of 1929, the stock market did have a small crash, but Charles E. Mitchell essentially stopped the crash by continuing to loan out money even though many broker were issuing “margin calls. After Mitchell’s actions the stock market began to climb once more. Some economists were giving warning of a possible crash in the future, but they were all dismissed as many people did not want to believe it, especially with the price of stocks soaring shortly after the small crash. However these few economists were right about a future crash, throughout the month of September stock prices fluctuated and eventually crashed on Black Thursday (October, 24, 1929).

One of the biggest scam in the entire United States history was noticed by Harry Markpolo and the criminal was Bernie Madoff who was the reason for $50 billion dollar financial fraud. It took very less time to find the fraud for the investigator Markpolo and few hours to demonstrate the procedure scientifically. As being responsible Markpolo reported to SEC (Securities Exchange Commission) in the year 2000 as it is the initial one. After that Markpolo again reported to SEC in between the years of 2000 to 2008 for five times but the higher authorities are repeatedly ignored about the case. Markpolo was initially in May 2000 found that 3 to 7 billion dollars are looted in this Ponzi scam it was increased to 10 to 12 billion dollar

started to set in as bankers attempted to stabilize the market. However the market went into

Lying Lying…what exactly is lying? The definition of lying is “not telling the truth in the face of society ”. Lying is considered wrong and a sin in places all around the world, including America. When you lie you destroy the shield of trust that people think of when your name is mentioned. This creates tension and feuds with all of the people involved.

Madoff was well aware of the fact that these representations were false. Madoff failed to keep his promises to BLMIS clients by failing to invest the BLMIS investment clients’ funds in securities like he said he would. Madoff caused there to be tens of thousands of account statements and other documents sent through the United States Postal Service to BLMIS clients throughout the operation of his scheme. Madoff was able to steal billions from his victims through his scheme. This large making came from more than just individual investors but also from charitable organizations, pension funds, and some victims even lost their life savings due to this scheme. Madoff also obtained investor funds through interstate wire transfers from financial institutions located outside New York State and through mailings delivered by the United States Postal Service.

Eventually, his scheme reached a staggering 50 billion dollars under his management. It came to an end after market conditions led to a considerable amount of redemptions when investors started to take their money back.