Ponzi Scheme Essay

2284 Words 10 Pages
Register to read the introduction… Tangled Webs examines the struggles between right and wrong, focusing on American’s concern of the truth. The author of this book, James Stewart, states how lying is becoming more and more a part of the human nature. From the beginning, this nature of lying has brought forth many problems in the judicial process. By the sixteenth century, the English common law embedded perjury as a crime. Lessening the degree of the punishments, perjury still today is a federal offense under the U.S. criminal code Title 18. Perjury is committed all too often in all fields of business, media, politics, sports, and more. “It’s nearing a crisis,” commented by James Comey, the former deputy attorney general and U.S. Attorney (Stewart). Stewart interviewed this man about the consequences of perjury and false statements. “The truth is, this is an honor system. We count on the fact that witnesses will testify, produce documents and other evidence, and tell the truth. If not, the whole system is reduced to nothing but perjury and obstruction prosecutions” (Stewart). Why would people with so much to lose put all of that at risk by lying under oath? Whatever they may have done, why would they collide their problems by committing an independent felony, punishable by prison? Many reporters and investigators confront these questions and examine recent cases of perjury. One of the most important cases of all time goes directly to the mastermind of all lies, Bernie Madoff, with his $65 billion Ponzi …show more content…
Reported from Wall Street Journal, the SEC was not fulfilling their duties in protecting investors. According to Kathleen Furey, a senior lawyer who worked in the New York Regional Office, her group at the SEC’s New York office did not take action in the Bernie Madoff case. Furey said she was flatly told by her boss that they did not mess with investment manager cases. After Madoff’s scandal broke air, this grew incredible embarrassment towards the SEC. The company received several warning signs from investigators and looking at the outstanding results Madoff’s company was gaining, but took no additional action. The SEC fully believed they could not find anything within the Madoff case, but it turns out they would have been able to uncover the fraud with just a little examination (Taibbi). Due to this, many people still to this day are suffering from this scandal that could have been stopped. “Our kids are now deep in debt,” says 60-year-old Ms. Suzanna Webel. “We couldn’t afford to pay their bills, so they had to take out huge loans, and they will have to be saddled with that for 40years. And our retirement funds are gone” (Strumpf). This was reported in the The Wall Street Journal, where Dan Strumpf interviewed several victims from Madoff’s scandal facing financial problems. Many of these victims are just now receiving money to help cover their losses that occurred over four years ago. However, nothing will change the cost and consequences these people are and were facing due to the undetected

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