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Bernard Madoff's Ponzi Scheme

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Recommended: Ethics in business environment

In my opinion, Bernard ‘Bernie’ Madoff’s Ponzi scheme was too carefully thought out to be considered a short-term strategy as a means to get ahead. Instead his scheme was fueled by greed and eventually caught up with him and those who were involved with his firm’s unethical behavior. I presume Madoff’s greed for wealth transpired from his moral philosophy of “if we act rich, we become rich”, which was to appeal to others as being more wealthy than e and his family were (cite). In order to keep up appearances, both personally and professionally, Madoff needed to continue the unethical behavior via fraudulent financial activity to account for the movement of funds, which is not in compliance with the regulations set by the U.S. Securities and
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Over a century after his death, Stanford’s name lives vividly in international consciousness as one of the most prestigious universities in the United States. However, before he and his wife, Jane, created Leland Stanford Jr. University, his origins begin quite differently: as an adventurous capitalist and politician who made California his stomping grounds over the course of several decades. Stanford experimented with various industries and enjoyed great wealth as one of the major robber barons of the late 19th century. Although Leland Stanford may have achieved his wealth through morally questionable ways, his legacy lives on through what is now called Stanford University, erected in memory of his deceased son.

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One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves.

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Andrew Carnegie discusses three different forms of distributing riches. Carnegie used ethos and pathos as well as vocabulary in order to strengthen his argument. The three methods are inheritance, distributing after death and distributing during a lifetime. Inheritance refers to the wealthy person leaving behind their riches to their children. Carnegie argues that this method often leads to failure.

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In the civil securities fraud context, the Supreme Court has held that intent indicates that the plaintiff act willfully with a realization that she was acting wrongfully, Ernst & Ernst v. Hochfelder, 425 U.S> 185, 193, 47 L.Ed. 2d 668, 96 S. Ct. 1375 (1976). Or in the criminal securities indictment did the plaintiff have a mental state embracing intent to deceive, manipulate, or defraud, United States v. Dixon, 536 F.2d 1388, 1395 (2d Cir. 1976). The issue is not which definition of intent to apply, but whether, taking into account the heightened standard of proof in criminal cases, is there sufficient evidence of Stewart’s intent to deceive investors.

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