How One Big Lie Can Destroy Thousands Of Lives By Bernard Ponzi Scheme

Business Ethics For the given case study, author has explains how Ponzi scheme, a duplicitous investment procedures guaranteeing high returns destroy the financial assets. It mentions loopholes in the US financial system to find deceitful transactions through Bernard’s case of “How One Big Lie Can Destroy Thousands of Lives”. In this case, Bernard has run a Ponzi scheme for almost 20 years. Though having many signs of duplicity in his business, such as above averaged returns, close trading system, absence of transaction’s reporting on S&P, and several efforts and evidences from Markopoulos and so on, SEC finds no wrongdoings in the Bernard’s business because of his influence, poor exploration by SEC, his charity works and other factors. However, as said by author that Ponzi scheme cannot stand a long and Bernard’s falsification is exposed in 2008 as having no business ethics’ implementation and it is found that almost $65 billion of 4800 clients is put at the risk by Bernard and he and his companions, mostly his relatives are found guilty and punished with various fines in the different categories of financial crimes.

Bernard’s business has no transparency elements as they have fabricated financial records without anyone’s agreement. Also, unskilled and relatives are employed to keep corrupt business. Moreover, fiduciary and property principles are not followed as no one acts to keep interests of the stakeholders and even, family members gain personally from the transactions, and nobody cares to protect financial assets of the stakeholders and uses it as per the convenience and interests. In this manner, Bernard and his company also fail to maintain fairness principles as they deceitfully advise stakeholders to restrict from asking returns to have more returns and company also uses its influence to distribute profits at