ipl-logo

Ethical Behavior: Bernie Madoff's Ponzi Scheme

1008 Words5 Pages

Ethical behavior is a representation of leader’s self-reflection of who they truly are, and with past multi-billion dollar companies reported committing unethical and unmoral acts of behavior, it is imperative that leaders fully comprehend the ramifications related to their unethical behavior. Furthermore, an ethical virtue demonstrated by a leader paves the foundation for their followers to behave with the same ethical behavior established within the organization thus establishing a followers’ commitment to their organization. Additionally, the rise in corporate ethical scandals today representing the unethical behavior and, raising awareness relevant to the investigation into their illegal and unethical acts of conduct. The fact that leaders …show more content…

Furthermore, rather than targeting the existing, investors, he decided to target and exclusive group of investors of which he maintained a close relationship thus avoiding any potential for investigation by the United States security and commission (SEC). Madoff was successful in his scheme by means of ensuring that his record keeping was up to date and current. The investors believing they had the ability to withdraw the funds at any period-of-time allowed for no suspicion or wrongful notions. In 2008 Madoff began seeing that the scheme was slowly dissipating because of the investors requiring that he converting their assets due to the decline in the market, Madoff eventually caught in December 2008 and sentenced to 150 years in prison (Yang, …show more content…

The particulars of the terminal values relevant to Bernie Madoffs ponzi scheme involve his desire for a comfortable and exciting life, social recognition, his lack of proving security for the investors, as well as his personal desire for accomplishment (Gamble, & Gamble, 2016).
Ethical theories and rationales
Model of ethical decision-making Relevant to the Bernie Madoff scenario, it is evident that he demonstrated ethical egotism in accordance to the manner in which he used to promote his ponzi scheme it is evident that he developed the scheme in his own self-interest without considering the ramifications inflicted on the unknowing victims he lured into his deceitful unethical scheme to swindle hid victims of their money. In addition, it is obvious that his Ponzi scheme intended to benefit solely him and thus him believing he was victorious in his tactics of swindling the hard earned money of his investors, it is clear that his primary objectives in addition, to winning were to be seen as the best there was while expanding his profits for his own

Show More
Related

  • Mickey Monus

    742 Words  | 3 Pages

    In this paper I will be analyzing the research on Mickey Monus and his fraud crimes. I will exam the fraud and how it applies to this course, such as where it belongs on the fraud tree. Along with what type of fraud was committed, and how they got away with it for so long. Mickey Monus, the former president of the most successful multi-billion-dollar discount drug chain in American history, is from a town in Ohio called Youngstown.

    Read More

  • Theodore Roosevelt Research Paper Outline

    773 Words  | 4 Pages

    Trust busting He believed WALL STREET FINANCIERS and powerful

    Read More

  • Ulysses S. Grant Research Paper

    1275 Words  | 6 Pages

    He would entice investors to give him money, and then illegally use that money as “collateral” for multiple loans. “Investment dividends” were paid out regularly to give the impression of successful management, but this money was simply contributions from other investors. Ward, quite simply, was the Bernard Madoff of the

    Read More

  • The Murdaugh Murders: A Southern Scandal

    956 Words  | 4 Pages

    He resorted to using the law firm's money for illegal activities. He then suspiciously stepped away before the problem was made known to

    Read More

  • Bernie Madoff's Unscrupulous Work

    509 Words  | 3 Pages

    Now that you're mindful of where the expression "Ponzi plan" originates from, you'll show signs of improvement comprehension of Bernie Madoff and his unscrupulous play! Bernard Lawrence Madoff was conceived on April 29, 1938, in Queens, New York, to folks Ralph and Sylvia Madoff. Ralph, the offspring of Polish settlers, worked for a long time as a handyman. His wife, Sylvia, was a housewife and the little girl of Romanian and Austrian migrants.

    Read More

  • Court Case Brief-US V. Martha Stewart And Peter Bacanovic

    991 Words  | 4 Pages

    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.

    Read More

  • Bernie Madoff Case Summary

    1555 Words  | 7 Pages

    It wasBernie Madoff also Pled guilty to wire fraud mail fraud Filing documents with the SEC and theft from employees and benefit funds. Bernie Madoff also was charged with and pled guilty to Money laundry 11 counts. The Madoff case Sites Station in United States v. Evan 325 F.3d 65, Or in this case the guidelines the calculation called to life imprisonment but not Counted carried a life sentence in the Court held the guidelines regulated is 240 years the maximum sentence for all the accounts added it together. According to the case Who are the guidelines regulations not life imprisonment but a hundred and fifty years maximum sentence for each Of the 11 counts added

    Read More

  • Whistleblowing System In The Film Chasing Madoff

    1179 Words  | 5 Pages

    “Chasing Madoff”, a documentary released in 2010 portrays the way the whistleblower, Harry Markopolos, uncovered Bernie Madoff’s fraud scheme and his ten-year struggle to get the SEC to investigate. The documentary begins with an introduction to Harry Markopolos and his former coworkers Frank Casey and Neil Chelo. The three men work in finance, with investment portfolios. They were aware that in the finance industry there was much talk about an investment company making their customers high returns. Casey came across some investment information from a client of Madoff and gives the information to Markopolos to look over.

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

    Read More

  • Worldcom Case Study

    902 Words  | 4 Pages

    On the other hand, as he never sold his WorldCom stock, which was a showed that he was unaware of the fraud of financial statements and accurate position of WorldCom. 2. If the fraud had not been detected when it was, how long do you think it might have continued and how would it have ultimately been revealed? If the fraud has not been detected that it might have been gone 10- 20 years undetected. It may have been ultimately detected by the use of checks and balances, and multiple audits through independent auditors.

    Read More

  • Ethics And Moral Issues In The Enron Scandal

    931 Words  | 4 Pages

    In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .

    Read More

  • Essay On Ethical Leadership

    1451 Words  | 6 Pages

    Must employees will notice, criticized, or even emulated the moral failures of their leaders. If we look at our world history, it is filled with examples of how competent leaders have failed from ancient times to modern times. Periodically, we read about unethical behavior in some type of media outlet. Which often corrupts the public’s trust in the leader’s company or agency, then it brings the individual leader into question.

    Read More

  • The Worldcom Fraud Case

    2107 Words  | 9 Pages

    This three element fraud is often referred as a fraud triangle by the researchers (Cohen, Ding, Lesage & Stolowy, 2010, p. 276). On the other hand the theory of planned behavior focuses on the intentions behind the planned behavior. Ajzen (1991, p. 188) explains this as “attitude toward the behavior… refers to the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question”. Cohen, Ding, Lesage & Stolowy (2010) have combined the fraud triangle and theory of planned behavior to understand that how the two theories can be collectively studied to find out the reasons behind the unethical activities that results in corporate frauds. Cohen, Ding, Lesage & Stolowy (2010) in their work studied various organizations including WorldCom and identified following: • WorldCom’s management had an excessive interest in maintaining the entity’s stock price and earning trends (p. 287).

    Read More

  • Ethical Leadership In Organizational Behavior

    1106 Words  | 5 Pages

    There is need to pay more attention to an analysis of unethical behavior in leadership and its relation to corporate culture. Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace.

    Read More

  • Literature Review On Unethical Behavior

    2877 Words  | 12 Pages

    Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.

    Read More

More about Ethical Behavior: Bernie Madoff's Ponzi Scheme

Open Document