Bernard Madoff’s ponzi scheme was the largest in the history which defrauded investors out of as much as $65 billion. David Friehling, the leading auditor of Bernard L. Madoff Investment and Securities’ (BLMIS), was sentenced for aiding Madoff with investment advisor fraud, and filing false audit reports with the SEC. Since then, people are paying more and more attention to auditors’ and accountants’ legal liability. This document will describe the ways in which BLMIS auditor disregarded his responsibility
Words: 296 - Pages: 2
due to the major financial fraud cases such as Enron, WorldCom, Bernard Madoff and others. The main audience for this term are individuals who are related to the accounting field. Learning that an organization has been cooking the books instantly portrays that a financial fraud has occurred. Also, this term has become a part of the English language due to the major financial fraud cases such as Enron, WorldCom, and Bernard Madoff. This term is effective in its way that it portrays that when
Words: 523 - Pages: 3
Ethics and Accounting In the professional field of accounting there are vast opportunities that accountants are faced with every day in regards to ethics. Accountants are given the position to maintain the financial status of businesses as well as individuals. Businesses hire accountants to keep accurate financial records so that the business has the opportunity to provide goods and services to consumer. These financial records are important to promote healthy business decisions. If a company
Words: 499 - Pages: 2
The Madoff scandal 16 December 2008 The repercussions from the collapse of Bernard L. Madoff Investment Securities LLC, whose founder and owner was arrested last Thursday after admitting that his $17 billion investment advisory business was "a giant Ponzi scheme," continue to widen. According to a criminal complaint filed by the FBI and a civil action brought by the Securities and Exchange Commission (SEC), the elderly Madoff estimated that the losses from his fraud exceeded $50 billion. The
Words: 1060 - Pages: 5
The Madoff Affair Bernard Madoff was a former stock broker who was involved in the largest Ponzi scheme in history from which he earned billions of dollars. A Ponzi scheme is an illegal operation in which all profit that each investor earns is actually just the individuals own money or another investor’s money that is just cycling through the system. There is not actually any profit being earned through the investment. A Ponzi scheme is able to stay in business as long as there is a steady flow
Words: 630 - Pages: 3
Hedge Funds 1. Hedge Funds Versus Mutual Funds Mutual funds are regulated under the SEC Act 1933 and the Investment Company Act of 1940 and they must invest according to the stated goals in the prospectus. They are adjured to avoid ‘style drift.’ Hedge funds are not open to the general public. The primary investors are institutional investors but they are open to high net worth individuals. Most require minimum investments of $250,000, some go up to $1,000,000. A few now have a minimum
Words: 1577 - Pages: 7
At the peak of today’s ethical environmental dilemmas stands Monsanto, the organization that prides itself on the ability to create sustainable agriculture. There are also scandals with regard to scrupulous or fraudulent investors, such as Bernard Madoff, who prosper at the expense of trusting individuals. Lending institutions have also taken advantage of the financially ill-informed consumers who have lost their homes and in some cases their families and lives as a result of subprime lending
Words: 5512 - Pages: 23
Head: EXPLAINING WHITE COLLAR CRIME White Collar Crime Explanation Kaplan University Deborah Llamas CJ501P-01N Professor Tom DiPaola August 14, 2013 Bernard Madoff, appeared to be a cordial man with an alluring personality, however, despite his friendly demeanor Madoff had another side to him that was not as friendly and compassionate, he was considered to be withdrawn, cold, and unfriendly (Cresswell, & Thomas, 2009). Accordance to the video Maddoff was
Words: 1042 - Pages: 5
Bernard Madoff’s ponzi scheme was the largest in the history which defrauded investors out of as much as $65 billion. David Friehling, the leading auditor of Bernard L. Madoff Investment and Securities’ (BLMIS), was sentenced for aiding Madoff with investment advisor fraud, and filing false audit reports with the SEC. Since then, people are paying more and more attention to auditors’ and accountants’ legal liability. This document will describe the ways in which BLMIS auditor disregarded his responsibility
Words: 493 - Pages: 2
will benefit the public who relies on the accountant/auditor's reporting. “As part of the largest financial fraud in U.S. history involving mega thief Bernard Madoff, a New York auditor, David Friehling is facing jail time for deceiving investors by signing off on fraudulent financial statements. Mr. Friehling, 49 years old, worked for Mr. Madoff from 1991 to 2008, running his storefront operation out of an ordinary office in New City, a suburb of New York City, N.Y. Mr. Friehling is to convicted
Words: 1008 - Pages: 5
