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Ethical Behavior in Business

In: Business and Management

Submitted By rbettinger
Words 877
Pages 4
Russell Bettinger
BUS-340 – Ethical and Legal Issues in Business
26 October 2014
Esther Lahargoue

Analyzing Ethical Behavior Bernard Madoff was a renowned stockbroker, financial adviser, and served as the chairman of NASDAQ. Bernie Madoff is also solely responsible for the largest accounting fraud in all of American history. In December 2008, Madoff admitted to the federal authorities that the wealth management branch of his business, Ascott Partners, was a full on and elaborate Ponzi scheme. A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Over the course of nearly two decades, Madoff took an estimated 65 billion dollars from his investor’s fortunes. What made Bernie Madoff successful in his fraudulent ways was the façade put up by the general public of being highly respected, well established, and an esteemed financial extraordinaire. The U.S. Securities and Exchange Commission caught a lot of heat for failing to investigate Madoff extensively and thoroughly. Madoff ended up being found guilty of eleven federal crimes and sentenced to 150 years in prison with restitution costs at around seventeen billion. The fallout from his master scheme went far deeper than anyone would have expected, as some of the businesses he had invested in and vice versa, were forced to close down temporarily. Enron was an energy company based in Houston, Texas. The scandal that happened within Enron is considered to be one of the most notorious in American history. It all started when the executives within Enron were granted with government deregulation. This deregulation allowed for Enron to maintain full ownership of the earnings reports that were sent to their investors and employees. This opened the door for their earnings reports to be skewed and tailored to the executives...

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