Pyramid and Ponzi schemes

Analyzing The Big Short The whole housing market is built like a giant Jenga tower. The AAA mortgages are at the top of the tower while the BBB’s are the lowest base of the tower. The AAA’s and AA mortgages were to make so much money that the extra money was to trickle down to the BBB’s at the base. This information is in the book The Big Short: Inside the Doomsday Machine written by Michael Lewis. He has written many best-selling non-fiction books like Moneyball and The Blind Side both were…

The term “ White -Collar Crime, “ carries many definitions that have changed throughout the decades in the United States. These definitions change with perception, participation, and the addition of actions to the term. White-collar crime carries a general perception of offenders, who are generally professional individuals since they have the knowledge required to execute these complex crimes. Examples of these crimes include fraud, price fixing, money laundering, and embezzlement . Although…

This is not the first time Madoff office has been raided by SEC investigators, the recent raid being on 20th April 2005. They wanted to know if Madoff had hedge trade funds or executing hedge trade funds for others as he always claimed. Their investigation was after SEC staffers had found an email that expressed why Renaissance Technologies stopped doing business with Madoff. Initially, examiners claimed they were just on a normal routine examination of the brokerage firm’s books and records. On…

showed was bankruptcy fraud, and a form of blackmail. Baste of the information in chapter 6 the reason why white collar criminals are able to carry out their schemes for so long are, because most of them are mostly highly educated people that work within a powerful business or organization. One of the ways Madoff was able to keep his scheme going for so long because, he hired inexperienced employees or uneducated people with no background in finances. Madoff was very successful with getting…

more respected, his clientele list became more select. Bernie Madoff promised his wealthy investors that he could generate consistent returns on their investments while they would sit back and wait for the right time to cash in. Madoff’s entire Ponzi scheme was based on the trust his investors had in him and the profits he could bring…

There is overwhelming evidence that Bernard Madoff did not work alone. He may have masterminded the entire scheme but he has accomplices along the way that helped him to carry out his elaborate fraud and several have been charged for the crimes. For example, between 1998 and 2008, Madoff wrote $84 billion in checks to just four people (Johnston, 2014). According to Johnston, in 2002 alone, 318 checks were written from Madoff's 703 account to a Norman Levy, who had a private offshore bank; who…

To this day, one of the most well known American swindlers and criminals of the administrative field is Bernard Madoff. The opportunist made it seem as though he was a caring nice individual that could be trusted, but the real truth was that he was a crazed and greedy criminal. It came as a shock to most people when he confessed to the crimes he had committed because he was a master at hiding the person he truly was. The people he worked so closely with believed in him and trusted him whole…

He was introduced to the carpet cleaning industry at the age of twelve by his mother, who worked as a telephone solicitor for a small carpet cleaning firm. Due to the lack of barriers to entry in this industry (no licensing requirements, no apprenticeships to be served and only minimal start-up capital needed), it is not hard for anyone to start a carpet cleaning company. But at the same time, no barriers to entry meant that there was a cutthroat competition within the industry and it was not…

The definition of a Ponzi scheme is, "an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks". What started out as a small, legitimate trading firm created by one man transformed into a multi-billion dollar Ponzi scheme. Investors who bought into the scheme varied from Hollywood celebrities, banks and hedge funds, to universities, charities, and ordinary people. The investors never knew their money was actually…

Bernard Madoff. Bernie Madoff has committed one of the largest financial fraud, Ponzi scheme, in history and 'made a loss of nearly $65 billion. Bernard Madoff is an American fraudster and a former stockbroker, investment advisor, and financier. Bernie Madoff was a well-known and a well-liked man on Wall Street. Madoff had a perfect reputation, not only in the investment market, but socially. He ran an elaborate Ponzi scheme at his investment company, Bernard Madoff Investment Securities.…