Case Analysis Ponzi Scheme - 1312 Words

Introduction In 2005, former Fort Lauderdale, Florida attorney, Scott Rothstein initiated a Ponzi scheme in excess of $1.2 billion dollars. Rothstein’s scheme, like all Ponzi schemes, eventually failed as exponentially necessary investors failed to materialize. The impending collapse of the scheme prompted Rothstein to flee to Morocco to avoid extradition back to the United States to face charges for his role. Days later Rothstein returned to Florida, and was subsequently arrested. The case differs from many Ponzi schemes due to a number of unusual characteristics. The breadth and depth of this particular scheme was substantially greater than many similar frauds, and it remains one of the largest recorded Ponzi schemes. Upon his return Rothstein vowed to cooperate with authorities, and he did exactly that. As a result of his cooperation numerous indictments and convictions were realized, yet the case continues to unfold. Two final unique points exist. First federal prosecutors are using an exception to the statute of limitations to prosecute well beyond what many thought possible. Many believed that remaining Rothstein co-conspirators would avoid prosecution. However, provisions within the Dodd-Frank Act provide for extension of the statute of limitations to ten years if the crime alleged affects a financial institution. TD Bank involvement is a significant factor in whether said extension will apply to the remaining cases. Lastly, victims of the Rothstein sche me areShow MoreRelatedA Ponzi Scheme Of Excess Of $ 1.2 Billion Dollars1729 Words   |  7 PagesFlorida attorney, Scott Rothstein conducted a Ponzi scheme in excess of $1.2 billion dollars. Rothstein’s scheme, like all Ponzi schemes, eventually failed as new investors fueling the fraud failed to materialize. The scheme’s impending collapse prompted Rothstein to flee to Morocco avoiding extradition back to the United States to face charges for his role. Days later Rothstein voluntarily returned to Florida, and was subsequently arrested. Analysis This case results from Rothstein and his fellow conspirators’Read MoreChapter 1679 Words   |  3 PagesCase 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 theRead MoreBusiness Ethics Bernard Madoff Essay1664 Words   |  7 Pagesthe largest Ponzi scheme in history with very little help. He had a legitimate stock trading business on one floor and his illegitimate investment management business was on another floor (Ferrell, Ferrell Fraedrich, 2011). The top executives in the company were family which leads to the question, did they really not know? This paper will examine the origin of the Ponzi scheme, a brief history of Bernie Madoff, and the fallout as a result of his fraudulent business. A Ponzi scheme is â€Å"a fraudulentRead MoreDavid Robert Gilmour Ross Financial Advisor For Over 20 Years1577 Words   |  7 Pagesinvestigation showed that there were trading records in Australia, North America, United Kingdom, New Zealand and elsewhere. The High Court accepted the application to appoint accountants and brokers to deal with the investigation and matters related to the case. Accordingly, John Howard Ross Fisk and David John Bridgman (jointly ‘receivers’) of PwC, assisted by brokers from First NZ Capital, were appointed as receivers and managers of David Ross and Ross group of entities. Consequently, the report preparedRead MoreOverview of the Bernie Madoff Investment Fraud1684 Words   |  7 Pagesï » ¿ Case study: Bernie Madoff Abstract This paper will provide an overview of the Bernie Madoff investment fraud, a Ponzi scheme that continues to affect the lives of the individuals Madoff defrauded under the screen of a legitimate investment firm. It will argue that the signs of the Madoff fraud were obvious and that a combination of a lack of regulatory oversight and incompetence allowed Madoffs chicanery to continue, even longer than Madoff himself thought possible. However, this does notRead MoreThe Lie of the Century2580 Words   |  11 Pages| The Lie of The Century | Analysis of Bernard Madoffs Ponzi Scheme | | Introduction As long as the investment financial market existed, only one man was able to etched his name to the investment history as the greatest fraudster, and his name is Bernard Madoff. A brilliant fraudster that able to swindled over $50 billion from thousands of people using a type of investment fraud called Ponzi Scheme. Using this type of investment frauds and his charming personality, Madoff stolenRead MoreCorporate Scandal Stanford2590 Words   |  11 PagesWhat Went Wrong: Case Study of a Selected Corporate Scandal â€Å"In Texas, Robert Allen Stanford appeared to be yet another flamboyant billionaire. But in the breezy Caribbean money haven of Antigua, he was lord of an influential financial fief, decorated with a knighthood, courted by government officials and basking in the spotlight of sports and charity events on which he generously showered his fortune.† This quote from an article in The New York Times portrays the life of Mr. Stanford, owner ofRead MoreMadoff Ethics Case Study2153 Words   |  9 Pagesproved to be more efficient than other. This case study is chronology of the largest Ponzi scheme in history. Bernie Madoff began his brokerage firm in 1960 and grew it into one of the largest on Wall Street, New York, USA .While doing so; he began investing money as a favor to family and friends, though he was not licensed to do so. Over a period of fifty years, these side investments became an investment fund that mushroomed into a $50 billion Ponzi scheme. Bernie pled guilty without a trial on MarchRead MoreEthics and Social Responsibility Essay9502 Words   |  39 PagesUniversity of Miami Ponzi Scheme Abstract The University of Miami case was one of the biggest financial scandals in the past year. Former UM Football Booster, Nevin Shapiro, orchestrated a $930 million Ponzi scheme, with which numerous NCAA rules were violated. Shapiro allegedly provided cash, goods, prostitutes, assorted favors and on one occasion, an abortion to University of Miami football players. This paper will examine the various legal and ethical implications involved in this case, includingRead MoreThe Case of Bernard Madoff4541 Words   |  19 PagesBusiness Ethics Final Report The Fraud of the Century: The Case of Bernard Madoff Group No. 5: International Students é º ¥Ã§ «â€¹Ã¥ ¦ ² 98370389 é ­ Ã§ ¶ ­Ã¥ ¾ · 98370390 Ã¥ · ´Ã§Å½â€°Ã©â‚¬ £ 98370452 December 2011 Introduction We chose Bernard Madoff’s case because we thought that we could relate his case to many unethical behaviors. The analysis can be made on decision making and lack of ethical training which we think is an important topic to focus on this course. On Dec. 11, 2008, Bernard Lawrence