The Ponzi Scheme (Bernard Madoff)
e)The Ponzi Schem(
Bernard Madoff
First Semester - 2012
Contents:
Name of the company…………………………………………………………2
Field of the company…………………………………………………...…..2
The Ethical dilemma or issue, which faced the company………………..2
The Consequences of ethical dilemma……………………………....….…3
-Economical consequences………………………………………....……3
- Social consequences……………………………………………..……..3
- Political consequences………………………………………….….…...4
The solution or the end of the ethical dilemma…………………….....….5
-Largest stake-holders……………………………….……….…….……5 -Incarceration…………………………………….…………..…….…….6
References………………………………………..………………...…....…7
Student Names…………………………………..…………………………8
Name of the company:
Ponzi scheme
bernard madoff scandal
The Field of Company:
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
The Ethical dilemma or issue, which faced the company:
Bernie Madoff had a really good reputation in the market that he was able to use unethically turning his wealthy management investment company to a huge Ponzi scheme defrauding his investors with over $65 billion dollars for at least 2 decades by promising his potential investors a high return on their investments with low risks, but rather than paying high returns to his clients he paid steady returns.
Bernie was also able to fool his own employees he gave them the idea that he was trading as a principal; making trades out of his on inventory that was kept hidden
Bernard Madoff
First Semester - 2012
Contents:
Name of the company…………………………………………………………2
Field of the company…………………………………………………...…..2
The Ethical dilemma or issue, which faced the company………………..2
The Consequences of ethical dilemma……………………………....….…3
-Economical consequences………………………………………....……3
- Social consequences……………………………………………..……..3
- Political consequences………………………………………….….…...4
The solution or the end of the ethical dilemma…………………….....….5
-Largest stake-holders……………………………….……….…….……5 -Incarceration…………………………………….…………..…….…….6
References………………………………………..………………...…....…7
Student Names…………………………………..…………………………8
Name of the company:
Ponzi scheme
bernard madoff scandal
The Field of Company:
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
The Ethical dilemma or issue, which faced the company:
Bernie Madoff had a really good reputation in the market that he was able to use unethically turning his wealthy management investment company to a huge Ponzi scheme defrauding his investors with over $65 billion dollars for at least 2 decades by promising his potential investors a high return on their investments with low risks, but rather than paying high returns to his clients he paid steady returns.
Bernie was also able to fool his own employees he gave them the idea that he was trading as a principal; making trades out of his on inventory that was kept hidden
References: 1- http://www.wsws.org/articles/2008/dec2008/mado-d18.shtml 2- http://en.wikipedia.org/wiki/Bernard_Madoff 3-http://www.regulatorycompliance.com/newsletter/2009/June/post_madoff_regulatory_world_changing.html ----------------------- King Saud University Collage of Business Administration Business Ethics 214