Write 5 pages thesis on the topic effects of corporate restructuring. This paper is going to critically analyze Ponzi scheme primarily focusing on the violation of business ethics, lack accountability, possible measures that could have prevented the fraud and the legal actions that were supposed to be taken in order to punish the perpetrator and prevent an occurrence of another similar scandal.
The company was committing a fraud by paying returns to the investors out of the money invested by their fellow investors rather than from the profit that the company was making. The scheme is estimated to have fraud the public more than $65 billion, making it the biggest fraud to have ever been experienced in America. His scheme crashed down during the 2008 USA economic crisis after the number of new investors drastically decreased making the firm to lack money to pay the existing investors. The firm’s executives were solely Madoff’s family members who were not involved in the running of the business organization.
Madoff completely violated the societal values in a number of ways. First, it is totally unacceptable, unprofessional and against the values of the society to engage in a fraud. He established the business with a bad motive and all his unethical actions were all deliberate. Madoff was enticing people to invest in this scheme by paying them high returns only that they did not know that he was paying them using other people’s principals. This means that his illegitimate venture could only last as long as there were new investors joining the scheme. Madoff is in this case portrayed as an untrustworthy person who has no any sense of empathy. He deceived his family, his employees, and most sadly thousands of investors who lost millions of money with others their life savings.