The Ponzi Scheme Research Paper

Ponzi Schemes also known as a multi-marketing organization are white-collar crime; it is essentially an individual swindling a quick investment from new investors. Always ends up with investors or victums losing “their shirt” all the profits and many cases the company and is bankrupted and the owner ends up in jail. Two very highly successful Ponzi schemes are Primerica group and Amway. Primerica Group sells insurance and financial services and Amway sells heath insurance, but it doesn’t matter what they sale, its all about recruitment. They take your hard earned money and invest it into there business for a bigger profit in the future for a retirement but many people who try to get some of there money back for emergency are sadly mistaken

A “Ponzi scheme” is defined by the SEC as investment fraud, that incorporates remuneration of professed returns to old investors from funds contributed by new investors. It could be thought of as a systematic process, requiring consistent fraudulent action and deceitfulness. Usually Ponzi schemes are generally short in length, but Madoff’s lasted for almost 30 years. In simpler terms, a Ponzi scheme is built upon the idea of robbing Peter to pay Paul, when in essence no real investment is made (Moaf.org). A Ponzi scheme promoter attempts to appeal to new investors by promising high returns with little to no risk involved. The new money obtained from the unfortunate and hopeful investors is then disbursed to it’s earlier constituents,

In December 2008, one of the largest Ponzi scheme surfaced when Mark and Andrew Madoff reported the works of their father, Bernard Madoff to the federal authorities. A Ponzi scheme is an investing scam that promises high rates of return with little risk to investors. The operator generates returns for older investors by gaining new investors. Bernard was arrested on December 11, 2008 and charged with securities fraud. He pled guilty to 11 counts and was sentenced to 150 years in federal prison-the maximum possible prison sentence. A reported $17.3 billion was invested into the scam by Bernie’s clients and only about $2.48 billion have been returned to these victims as of September 2012.

Convictions of the Bernie Madoff conspirators prove the Ponzi scheme could not have been the work of one person. Furthermore, the conspirators each played a critical role in facilitating the Ponzi scheme and concealing it from regulators, and auditors. For instance, Annette Bongiorno, was employed for Madoff for approximately 40 years as his secretary (Lappin, 2014). Consequently, Bongiorno was charged with manufacturing the false statements sent to clients that indicated they were worth a lot more than they actually were. Moreover, Bongiorno transferred $50 million of client’s funds into her own private account (Lappin, 2014).

Introduction Bernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960’s through the 1990’s, Madoff’s success and business grew substantially, mainly from a closed circle of known investors and friends through word of mouth. In the 1990’s Bernard L. Madoff Investment Securities traded up to 10 percent of the NASDAQ on any given day. With the success of the securities business, Madoff started an illegal money-management business, promising his investors consistent returns from 10-12 percent, unheard of returns at the time, which should have tipped off most investors that something was amiss.

White Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff NAME College White Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff Most people, when they hear the word “crime,” think about street crime or violent crime such as murder, rape, theft, or drugs. However, there is another type of crime that has cost

If you're vigilant and check your statements regularly, then you are probably safe. But, there are times where people may lose their entire life savings in an instant. Some people who are not educated on retirement plans or people who are getting older and they aren't up with the times may be subject to a Ponzi scheme or some other type of fraud.

Received an A- on this paper, United States History, DePaul University, put almost twenty hours into, most I write in four-five hours, very proud of this piece.

Introduction This paper introduces Bernard L. Madoff a fraudster who orchestrated a multi-billion dollar Ponzi scheme. The paper discusses elements that make up a Ponzi scheme and explains what a Ponzi scheme is. The paper goes on to introduce some of the victim’s and examines some reasons why someone

Scams can destroy any human life and destroy them emotionally, physically and financially. Fraud was labeled as a victimless crime. Years ago fraud was labeled as a victimless crime. Victims were usually considered to be dupes who allowed themselves to be fleeced by smarter people, dubbed con artists. People even more advanced that are criminals can be called a homicidal artist. People that are attached to murders, armed robber, etc. Another type of fraud is when criminals propose or inflate returns which they either know they can't keep or just ignore, this is otherwise known as the Ponzi scheme. If the person has had a financial loss and wants to make quick and easy money, also if they are greedy, they can use the Ponzi scheme. A ponzi

Glen Oliver Year 10 Business Studies Teacher: Mr Hijazzen Ponzi Schemes Throughout history there have been things called Ponzi schemes ruining people lives around the world. This report will include: what it is, how it works, characteristics,

Cheating is the basis of any scam. And the deception, as if harmless it may be, is a hoax. You can persuade people to give money. And also you can make sure that the money will flow into your pocket, so that the people themselves will carry them to you and even grateful that you've agreed to take them. This scale is a class this is a game for high stakes this is a scam. Despite the fact that during the XX century almost all developed countries have adopted laws to combat a Ponzi scheme this case is not just a living, but even thriving. An example of Bernard Madoff, who is known as the creator of the world's largest Ponzi scheme. Bernard Lawrence Madoff is the US broker, financier and investment analyst. He is best known as the organizer of

A Ponzi scheme is where the operator entices potential investors into fraudulent investments by offering them high returns on the money they invest. The main operator of this scheme is the only one that makes a significant amount of money. The operator will tell the investor he will make outstanding amounts of money and will reap some benefits. The way the investor makes money is due to the fact that the operator is deceiving new investors into investing new money into the scheme.

Ponzi Scheme Corporate Finance A Ponzi scheme is an illegal business practice in which new investor’s money is used to make payments to earlier investors. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. The returns are repaid out of new investors’ principal, but not from profits. This can continue as long as new investors line up with cash, and old investors don’t try to withdraw too much of their money at once.

One of the most notorious persons that people remember for committing one of the largest Ponzi schemes was Bernard Madoff. It was claimed that he stole over 65 billion dollars, but in actuality, he stole 20 billion dollars. His firm was responsible for making false reports claiming that they earned returns of 65 billion dollars. There is little evidence on when Bernard started his Ponzi scheme. Bernard claims that he started it in 1992 but research has showed it possible could have been started in the 60’s.