Investment Fraud Essay - 1310 Words

11/28/10 Business 210 Investment Fraud Charles Ponzi will forever infamously known as the con man of the 1920’s. Ponzi dealt with numerous amounts of investors who all trusted him to make them a profit on their investments. Unfortunately, Charles Ponzi was a crook from the start. He bought a total of $30 dollars in IPRC’s and stole about $30 million of his investor’s money. His brilliant idea that landed him in jail was to not buy IRPC’s at all, but to give people part of their own investments and call it a profit; hence â€Å"Ponzi Scheme†. Since the 1920’s there have been numerous â€Å"investment managers† who have committed the same con as Ponzi. When you break it down, it really is just handing money to†¦show more content†¦His fraudulent actions landed him the title of orchestrating the largest Ponzi scheme in history, a $50 billion dollar loss. Madoff was considered to have an uncanny forecast to see what investors should do. Later, the SEC found out what he was really doing and that these incredible double-digit returns were like everyone thought, impossible and illegal. According to the Securities and Exchange Commission, the â€Å"two back officer workers who worked for Madoff, confessed they created false trading reports based on the returns that Madoff ordered for each customer†.†-Associated press (www.npr.org) and that â€Å"once Madoff determined a customers return, one of the back office workers would enter a false trade from a previous date and then enter a false closing trade in the amount of the required profit, according to the indictment.†-Tom Steinert-Threlkeld, â€Å"Women of the House of Madoff†www.securitiestechnologymonitor.com ) All of his hard work of being a career crook was flushed down the toilet when in 2008, he was â€Å"struggling to meet 7 billion in redemptions, and was planning to honor his agreement to pay out $173 million in bonus’s†-David Margolick, Vanity Fair-â€Å"The Madoff Chronicles Part III† Madoff later confessed to his son Mark Madoff that he has â€Å"absolutely nothing† and â€Å"all of it was a lie†. Apparently Mark, told his brother Andrew and they both reported their father to the federal authorities. He was then arrested and was chargedShow MoreRelatedOverview of the Bernie Madoff Investment Fraud1684 Words   |  7 Pagesï » ¿ Case study: Bernie Madoff Abstract This paper will provide an overview of the Bernie Madoff investment fraud, a Ponzi scheme that continues to affect the lives of the individuals Madoff defrauded under the screen of a legitimate investment firm. It will argue that the signs of the Madoff fraud were obvious and that a combination of a lack of regulatory oversight and incompetence allowed Madoffs chicanery to continue, even longer than Madoff himself thought possible. However, this does notRead MoreBanking Fraud And The Banking Industry1481 Words   |  6 PagesA banking fraud is the use of illegal means to gain money, assets from depositors or clients fraudulently while posing as a bank, agent or any other financial institution. 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