Case 7.8 First Securities Company

Topics: Fraud, Audit, Auditing Pages: 2 (765 words) Published: March 20, 2013
From the time Ladislas Nay arrived to United States at a young age of 18, he learned that this was the land of opportunity, this sense of hope allowed him to achieve “success.” However, his “success” led him to not only cheat and steal people out of their money; it also led him to steal a life filled with happiness for himself and his family. Living with this guilt, and no longer could bear the burden of deceiving widowers out of their money he committed suicide, by not only killing himself but his wife as well.

This all began with Ladislas Nay working in a small brokerage firm; he worked hard learning the ropes of the business. From there he went on to work for a few more businesses before landing his final job working for the brokerage firm of Ryan-Nichols & Company. This is where it all began for Ladislas Nay, after a few years of working for Ryan-Nichols and Company; he achieved the status of becoming President of the company and had more than 90 percent of the company’s outstanding common stock. He was very well known; he had many friends and was liked by all his clients. Ladislas Nay began his manipulation by telling his clients to invest into a fund that he was in charge of. He then turned around and used the funds to lend to other companies; these companies would pay interest on the money loaned. However, Ladislas Nay own company was not aware of him taking people’s money and loaning it to other companies. He was scamming friends and widowers into investing large amount of money into this so called “fund.”

After 30 years this all came to a final end, and Nay’s scam was exposed. Everyone became aware of Nay’s so called “fund,” and how he had achieved in scheming friends out of their money. He left them with nothing, and even left one widower “penniless.” However, investors were not happy with this and decided to file a civil lawsuit in order to retrieve their millions of dollars of money they had invested with Nay. Investors felt that...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about First Securities Company of Chicago
  • Case Essay
  • Essay about Case Study 7.8
  • Security Plan for First Union Bank Essay
  • Essay about security
  • First Solar Powered Case: An Analysis Essay
  • Essay about Case 1.12:Madoff Securities
  • First Marblehead Case Study Essay

Become a StudyMode Member

Sign Up - It's Free