Chapter 1 - 679 Words

Case 8: The Fraud of the Century: The Case of Bernard Madoff Introduction Bernard Lawrence Bernie Madoff is a former American businessman, stockbroker, investment advisor, and the former non-executive chairman of the NASDAQ stock market. He is very successful in his early life. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960 by buying and selling over-the- counter stocks that were not listed on the NYSE. As he became more successful, he moved the company’s headquarters from Wall Street to the famous â€Å"Lipstick Building† on Third Avenue. After that, Madoff started to help his investors to manage their money. He used Ponzi scheme to cheat his clients by promising of consistent returns of 10 to†¦show more content†¦* Base on Madoff’s reputation, investors over trust him. Weaknesses * Madoff’s schemes need consistent money from new investors. During the recession, Madoff had difficult time to recruit the new investor. That’s how his schemes went down. * If lots of investors ask for cash out in the same time, that means Madoff needs to find more new money to run the schemes. * This can be considered as illegal fraud. Opportunities * More and more people like to invest their money before the recession. Threats * SEC and other investor will investigate Madoff’s firm * Accountant can check his transaction record. 1. What are the ethical issues involved in the Madoff case? From an ethical perspective, this is an example of white- collar crime. Madoff is a typical white collar criminal who abused his trust for profits. In fact, Madoff ‘s business is a lie. He promised all the investors will get the high return. Actually no one knew what is going on and what the investment detail is. Investors did not realize the problem because they still earning profit from Madoff. As more and more new investors throw money in these schemes, Madoff still has enough flow of money to pay to the old investors. That’s how he conducting his game. 2. Do you believe that Bernard Madoff worked alone, or do you think he had help increating and sustaining his Ponzi scheme? Would this represent a conflict of interest? I don’t think Madoff can do this by himself. InShow MoreRelatedA Chapter Of Chapter 1 : Chapter 1835 Words   |  4 Pagesâ€Å"They’re closing in†¦Ã¢â‚¬  . Aldrick mutters as he slips the bullet into the cylinder, he always knew this day would come, but the fact they choose to strike the household at it weakest moment infuriates him. It only take two days for the news to spread, and they come like vultures seeking carrion. He took a deep breath and set the last 5 bullets into the chamber, years of serving the military had taught him not to lose his temper in situation like this. A shuffling noise caught his attention, heRead MoreChapter 11226 Words   |  5 Pagesï » ¿Chapter 1 1. Which of the following statements is false?    The Internet is generally a reliable source of nutrition information, because information posted at web sites has been peer-reviewed. Web sites with .edu in their addresses are likely to provide reliable nutrition information. When evaluating claims for dietary supplements, be wary of products that include promises for quick remedies. In general, personal web sites, such as blogs, are not reliable sources of nutritionRead MoreChapter 11655 Words   |  7 PagesChapter 1 THE PROBLEM AND ITS BACKGROUND Introduction The researchers seek to inform their readers about the mental and emotional factors affecting the academic performance of a child in school regarding the working of their parents overseas. Nowadays, as life becomes uneasy to other families here in the Philippines, parents tend to work overseas to offer a convenient living to their children. As a result, it leads to several effects on the emotional and mental aspects of a child. This studyRead MoreSummary Of Chapter 1 : Chapter 1926 Words   |  4 PagesLong ago, at a minute village adjacent to Roc-A-Fella peaks, there lived three puerile boys. Jermaine, Nas, and Kendrick. Kendrick was a scion of the lightning district of the village, Nas was born and raised in the fire district, and Jermaine was a simple village boy who grew crops and raised cattle. Ever since the village was established it was divided into four main groups. The fire district, the lightning district, the village folk, and the All Mighty’s. Mostly all lived in placidity until oneRead Morechapter 13292 Words   |  14 Pagesï » ¿Chapter 1: MANAGERS, PROFITS, AND MARKETS Multiple Choice 1-1 Economic theory is a valuable tool for business decision making because it a. identifies for managers the essential information for making a decision. b. assumes away the problem. c. creates a realistic, complex model of the business firm. d. provides an easy solution to complex business problems. 1-2 Economic profit a. is a theoretical measure of a firm’s performance and has little value in real world decision makingRead MoreChapter 110766 Words   |  44 Pagesch01 Student: 1. Direct material costs are generally variable costs. True False 2. Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead. True False 3. Manufacturing overhead combined with direct materials is known as conversion cost. True False 4. All costs incurred in a merchandising firm are considered to be period costs. True False 5. Depreciation is always considered a product cost for external financial reporting purposesRead MoreChapter 18984 Words   |  36 PagesChapter 01 The Information Age in Which You Live: Changing       Multiple Choice Questions    1.  What does it mean to live in the digital age?   A.  Payment for goods is made with hard cash B.  Living, working, learning, and playing in a digital world C.  Accessing information over the Internet D.  Being born after 1990    AACSB: Use of Information Technology Difficulty: Easy Learning Objective: 1 Taxonomy: Knowledge and Understanding    2.  Why do we consider technology invasiveRead MoreChapter 12873 Words   |  12 PagesChapter 03 - Federalism 1. Governmental Structure 1. The single most persistent source of conflict in U.S. politics since the adoption of the Constitution has been the relations between the national and state governments. 2. Today, an effort is underway to reduce national gov’t powers, giving more strength to the states; this effort is known as devolution. 1. Some proposals give states block grants in which states get money that they can spend in any way theyRead MoreChapter 11257 Words   |  6 PagesI arrived to the location and I check the directory to make sure I was in the right building. I found Pearson in the Directory with 200 listed and confirmed that I was at the write address and just needed to locate the Pearson testing site. I entered the elevator and hit option 2, when I left the elevator onto floor 2 I was on the wrong floor. I hit the button to get back on the elevator and went back to the lobby. I walked around looking for assistance and literally ran into the Pearson testingRead MoreChapter Essay : Chapter 1877 Words   |  4 Pagesâ€Å"We can’t let the people know of this attack,† Queen Elara hisses. â€Å"Our people can’t know that the Scarlet Guard is getting stronger with each passing day and that they have reached the palace walls. We cannot let Reds have faith that they wi ll ever be equals with Silvers.† â€Å"What about Queenstrial? This situation isn’t going to get in the way of that, right?† There is no way that this minor bombing is going to stop Queenstrial from happening. â€Å"No, Queenstrial is still on. In fact, we could use Queenstrial