Pyramid and Ponzi schemes

Introduction Case Summary In 2013 Wesley Joseph Wingo, his wife Linda and their son Andrew Wingo, all plead guilty to varying counts of money laundering and misprision related to a five year federal investigation into the misappropriation of funds from the non-profit Angel Food Ministries. During this investigation federal agents uncovered evidence that the Wingo family made personal purchases using funds donated to the organization. According to Justice News, “Joe Wingo admitted that he used his

The key points made in the documentary on Jack Abramoff is briery, tax evasion, kickbacks and corruption worth jeopardizing your life, freedom, family, and ethics over. Jack Abramoff was a successfully lobbyist that thrived on winning and the attempt to influence decisions that were made by him and his team on contacts and things they believed in. Consequently, those beliefs and influence turned into to greed and unethical practices which caused Jack to lose his way. Jack Abramoff pleaded guilty

Both individuals made plea bargains with prosecutors in exchange for information on how the alleged scheme worked. They noted that, at the direction of Petters, Coleman and White would fabricate documents for Petters and others to use to obtain billions of dollars in loans. The phony records were used as proof that Petters Co. was buying merchandise, generally

most is a Ponzi scheme. The Ponzi scheme was created by Charles Ponzi. With a Ponzi scheme, the person makes a promise that the investor will have a high rate of return that can’t be found in the stock market. This person provides fake reports claiming the investor is making money when in actuality they are making nothing. One investor’s money is used for another investor’s money to show profit is being made. All the money is actually going to the person that is in charge of the Ponzi scheme. The scheme

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

Lee Bentley Farkas, former chairman and owner of Taylor, Bean and Whitaker, a privately owned mortgage company, was arrested for an orchestrated $2.9 billion fraud scheme which ended one of the, at the time, top banks in the country. Over the course eight years according to Australian Banking & Finance, Farkas and co-conspirators "cover[ed] up diversions of funds by sending false information to Deutsche Bank, BNP Paribas, and other financial institution investors." Which altogether allowed them to

Bernard L. Madoff was an executive of a multi-million dollar foundation created with the purpose to serve as a Ponzi Scheme to cheat investors of billions. He used the money from new, incoming investors to pay off supposed profits to earlier investors. This allowed for the operation to appear profitable and legitimate, even though no actual profit was being made because there was no actual investment. He was able to convince his investors to keep their investments in through the trust that he accumulated

named Bernie Madoff was sentenced to 150 years in prison for running the biggest fraudulent scheme the U.S. has ever seen. (Yang, Stephanie. "5 Years Ago Bernie Madoff Was Sentenced to 150 Years In Prison – Here's How His Scheme Worked." Business Insider. Business Insider, Inc., 2014.) Still till this day many of the people caught in this scheme have not regained what they contributed towards this scheme. In his time Madoff made over $65 billion dollars from people he got to believe to invest in

Ponzi scheme was first known as robbing Peter to pay Paul, meaning you borrowing money from one person or thing to pay back the money you borrowed from someone else. In a classic Ponzi scheme, investors are informed that they will earn unusual high returns because the con artist extraordinary skills and master plan the investors believe in them. However, there was only one known Ponzi scheme before Charles Ponzi came along and it was committed by William Miller in 1899. William Miller a New York

Bernard Madoff's Ponzi Scheme Bernie Madoff is a very well-known criminal that committed the biggest fraudulent scheme in U.S. history. He got caught in December 2008 and was sentenced to 150 years in prison for that. He used convinced thousands of investors to give him their savings and made them believe that they were investing their money in something special. He guaranteed high and stable returns to his investors. Madoff used a so-called Ponzi scheme which originated with Charles Ponzi, who promised