Question
Ponzi Schemes
Why do you believe we have the problem in society? (criminological theory) and what should we do to fix the problem? (policy).
Discuss bernie madoff and eron mortgage schemes
Use the following theories to explain why “we” have a problem with ponzi schemes
rational choice theory and conflict theory
Solution
Bernie Madoff and Eron Mortgage Schemes
There have been various Ponzi schemes, but Bernie Madoff, an American financer, executed the largest financial fraud in history. His Ponzi scheme managed to run for at least 17 years, where he had defrauded many investors out of tens of ten of billion dollars. Thousands of investors were defrauded in this scheme, but they had been tricked into trusting Madoff due to the respectability he had allegedly created for a long time, claims of applying legitimate strategy, and high but not outlandish returns. When the market was intensely affected in late 2008, Madoff could not hide and maintain the scheme anymore. His sons turned him to the authorities, which forced him to forfeit $170 billion and sentenced him to 150 years behind bars.
Another popular Ponzi scheme involves Eron Mortgage, where the top officials executed one of the largest frauds in the history of Canada. Around 3200 investors were affected by this scheme who lost about $170 million. Eron’s high returns and the numerous praises from media commentators were welcoming for investors at the time. The top principals in Eron particularly, Brian Slobogian, former president, and Frank Biller, vice-president, lied to investors, and after misusing the investor’s money, they produced false records. The investors experienced various losses, including homes, savings, and retirement security. Others experienced major harm to their emotional wellbeing, physical health, friendships, and marital relationships.
Regarding these crimes, some can perceive the causes as innate individual issues or criminal nature that the offenders were born with……………for help with this assignment contact us via email Address: consulttutor10@gmail.com