Types Of Financial Crimes That Can Be Committed By Many Individuals Around The World

1373 Words6 Pages
There are many types of financial crimes that can be committed by many individuals around the world. Some of these crimes include electronic crime, fraud, money laundering, terrorist financing, information security, bribery and corruption, finally insider trading. Of all these financial crimes that can be committed, I think that fraud is the most serious of them all. Fraud can ruin anyone 's life financially, no matter what they have in their bank account. Bernard Lawrence "Bernie" Madoff , a former stockbroker, financier, and investment advisor. Now he 's known as an American Fraudster. Bernie is the former non-executive chairman of the NASDAQ stock market, and he is also the admitted operator of a Ponzi scheme that is considered the…show more content…
The SIPC trustee estimated actual losses to investors of about $18 billion dollars.” Bernie Madoff, owner of “Bernard Madoff Investment Securities” ran elaborate Ponzi scheme with the assistance of Frank DiPascali. DiPascali was accountable for overseeing the 17th floor, the location where the illegitimate business trades occurred. “Madoff conducted the Ponzi scheme in the following way: he would receive investments from outside investors; he would, in turn, use those funds to pay senior investors. The funds that Madoff received were never used to make actual trades; the company, instead, produced fictitious trades. To keep suspicions low in the investors, Madoff had the staffers of the 17th floor create fictitious quarterly statements to mail out. The investors were pleased with the returns that the statements reports, so no suspicions ever arose.” Although suspicions with the investors never arose, some suspicions did arise with the Securities and Exchange Commission. The Securities and Exchange Commission investigated Madoff and his company 5 separate times. “On each of those occasions, the Securities and Exchange Commission auditors never spotted or red flagged any fraudulent activities, which then allowed Bernie to continue the illegitimate business trades for an extended period of time (A Television 2016).” As of December 4, 2015, MVF (Madoff Victim Fund) has reviewed 51,071 claims (nearly 80% of the 64,123 total claims) with claimed
Get Access