Bernie Madoff’s Ponzy Scheme free essay sample

Bernie Madoff failed to obey the laws that are considered the minimum code of conduct to which society has agreed to respect. â€Å"Breaking laws means breaking the social contract to which he agreed in becoming a member of society†. In turn this means that society has the right to punish him by revoking the rights granted by it. If we were to apply utilitarianism theory Madoff did not promote a behavior that maximizes the best for the stakeholders. His need for self-interest superseded the best interests of all other members of society. Indeed, many could argue that he demonstrated classic sociopathic tendencies. Relevant facts †¢ He promised high returns to the clients in spite of economic recession. †¢ Fund strategies were to buy securities from large and credible corporations with low risk with the promise of high returns and secure principle. †¢ He never invested the money. It was deposited instead into his business account at Chase Manhattan bank. We will write a custom essay sample on Bernie Madoff’s Ponzy Scheme or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page †¢ Bernard Madoff sat on the board of directors of the industry security association. †¢ In December 2008, Madoff’s sons informed the federal authorities after he confessed to them that the investment was a Ponzi scheme. †¢ In March 2009, he pleaded guilty to 11 felonies. In June 11, 2009 Madoff was sentenced to maximum sentence of 150 years in prison. †¢ SEC was scrutinized for not investigating, despite complaints from Markopoulos and others. †¢ Size of loss to investors between $12 and $50 billion Fairness to all concerned Bernie Madoff is the world record holder for a Ponzi scheme. He stole over $50 billion claiming he had invested clients’ money. Many investors lost their entire life savings and it ruined their lives. Even if he were to be sentenced with capital punishment his death wouldnt amply punishment for the damage he has caused for the stakeholders. Furthermore, the nonprofit organizations were compelled to end their operations. Hence, they are no longer able to contribute to the society. Life in prison or even capital punishment sometimes does not meet just requirements. In extreme cases such as this, where societal damage occurs and reoccurs on multiple levels, affecting both individuals and corporations, because of the acts of one immoral person, the justice system should deliver punishment in the swiftest and most thorough manner possible. Impact on society Besides many individuals and organizations being affected by Madoff’s Ponzi scheme, there are other affected groups which are not directly involved either by investing or being active in the industry. These include needy families. As a result of the Ponzi scheme many individual investors, financial institutions, hospitals and charitable organizations suffered a great deal of economic depression which in turn, resulted in loss of employment, reduction in wages, bankruptcy for some people, an increase in the unemployment rate, and in the worst of cases, even suicide. Since many families experienced a substantial reduction in their finances, more people were in need of seeking assistance from the government as well as from charitable organizations. â€Å"Since charitable organizations were among the victims of the Ponzi scheme, individual donors are less likely to make their donations,† or were more likely to donate less than their normal contributions. Therefore, agencies which receive less financial support would be able to support fewer families, even if there are more families in need of financial assistance. Impact to any related industries Bernard Madoffs fraudulent investment firm has had a tremendous impact in the investment industry and beyond, affecting large corporations globally, including some of the largest international banks, charities, pension funds and wealthy investors. The scandal, the worlds largest ever fraud, will mean the widespread destruction of wealth, not just in the United States, but internationally. It runs the risk of causing financial institutions and businesses to default on their promises, particularly those that have invested in hedge funds which could, in turn, bring down other investors, including major infrastructure and industrial corporations which have made loans to them. â€Å"While many of Madoffs clients were institutional investors, some of his victims were smaller investors, including charities, pension funds and individuals whom he knew socially and who had placed their nest eggs with him†. As all of society’s industries co-exist on some level, the financial devastation was truly widespread and all-encompassing. Consumer confidence has dropped to an all time low, in no small part to the behavior of one unscrupulous gentleman. Impact to the stakeholders Madoff’s Ponzi scheme as previously mentioned has had a tremendous impact on stakeholders whether that would be an individual investor, financial institution, large corporation or charitable organization. All of the stakeholders were not affected equally; that depended on the level of their financial capacity. Some of the individual investors were faced with bankruptcy or even committed suicide. Larger corporations were involved in lawsuits or write-downs. Individual donors changed their pattern of their donation and so on. Among others, charitable organizations were vulnerable to his Ponzi scheme because of his alleged consistency of high and stable returns. Madoff was attracted to charitable organizations because of the fact that they did not need to withdraw any proceeds from the Madoff investments to pay income taxes on their returns since they were tax free organizations. Charitable organizations seem to have been making high returns with Madoff over a long period, leading to a desire by other charities to share in the â€Å"profits†. Impact to the employees Fortunately, Madoff’s firm employed only a dozen people; that including his sons who allegedly were not involved in the Ponzi scheme. Employees that were involved in the scheme, such as the accounting firm are just as responsible as the mastermind of the Ponzi scheme. Other employees that were not involved experienced a great deal of humiliation, loss of credibility as well as financial loss. Industry image Financial industry throughout its history has been faced with numerous scandals that contributed to fear, cynicism and distrust. Undoubtedly, this has caused powerful emotions among investors. Looking back at the financial scandals that occurred over the years, we come to realize that unethical behavior and unprofessionalism led people such as Madoff conducting schemes causing a chain of negative reactions from individual investors to the economy as a whole. By setting the rules, encouraging everyone involved to hold to the highest of ethical standards, the industry ensures that it is and will remain fair and transparent for everyone. We are aware of the fact that the financial industry is based on principles of integrity and equality and focuses on stakeholder interests. Therefore, Madoff’s actions do not uphold the industry image. Federal guidelines Bernie Madoff not only disregarded the federal guidelines. â€Å"He was even convicted and charged with 11 federal offences, including security fraud, wire fraud, mail fraud, money laundering, making false statements, perjury; theft from an employee benefit plan and making false filings with the SEC†. Bernie Madoff never made any legitimate returns with his clients’ money. His blatant disregard for the rules and regulations that govern the financial industry indicate his scorn for the legitimacy of wealth creation. Personal conscious if involved in a similar situation If I were an employee of this company and became aware of the circumstances of its operation, it would be my moral obligation first to desist from working there, but more importantly, to report my findings to the appropriate authorities. It would be impossible for me to look at myself with a clear conscience if I did not do just that. References Magazines: David Glovin 2010 Money Manager Chais Remains Subject of Madoff Probe Bloomberg Janet Whitman 2008 Madoff investors unlikely to regain money Financial post Harry Markoplos 2005 The world’s largest fund is a fraud, SEC Robert Lezner 2008 Bernie Madoffs $50 Billion Ponzi scheme Forbes Henry Blodget 2009 Bernie Madoffs Victims Business insider Business Insider Internet sources: http://en. wikipedia. org/wiki/Bernard_Madoff http://www. wsws. org/articles/2008/dec2008/mado-d18. shtml http://money. cnn. com/2009/03/12/news/newsmakers/madoff_transcript/ http://www. cbsnews. com/stories/2010/06/03/business/main6544040. shtml

movie research paper

movie research paper movie research paper Corina Gracia Comp 1 Professor Jackson March 20, 2012 The Book of Eli The Book of Eli is a Post-Apocalyptic action movie Written in 2007 by Gary Whitta and subsequently rewritten in 2008 by Tony Peckham. This movie has some details that make of this movie different, and interesting. With starring of Denzel Washington as Eli and Gary Oldman as Carnegie we would begin to feel, compassion and anger. The character Eli is a very strong person but he also is manner, and pacifist. In the case of Carnegie it is totally the opposite, he is a controller, abuser and is obsessed with a book in order to control the town. However, this two characters are very well development, throughout the movie they reveals their abilities, and limits to defend or obtain a mysterious book. The Book of Eli was filmed in New Mexico in 2009 and was directed by Allen and Albert Hughes. The movie took place in the future after a nuclear war. The war left the new world desolated. Many things from the â€Å"old world† were lost, such as knowledge of how to read or write, peace, j obs, and etcetera. Also money did not existed people interchange articles for favor or other goods. The water is a treasure and was very hard to find and obtain, and due to the lack of food, there were many cannibals in the region. That world was such a mess, it looked like a desert, and many things and buildings were destroyed. As a consequence, of the war ignorance was very present in young people. The â€Å"evil persons† wanted to take control over the world, but they need to have very mysterious and powerful book. Eli’s mission is to protect it from everything and everyone; even to kill if was need it. The story starts thirty years after a post-apocalyptic war, Eli was told by a voice to take the book and to deliver a copy to a safe location in the West Coast of the United States. Throughout the movie Eli show his survival abilities, and also why he was the chosen. Eli’s way to think was different, as is his way to live. He is a nomad person who chose to accept the mission. He has surprising abilities such as good listener and smeller, quick hand with knives, guns, and etcetera. In comparison with other characters he has something special and never seen in a post-apocalyptic, like the messiah type before. After the long walk of thirty years, Eli faces his opponent Carnegie who is the leader of the hijackers, he proclaims himself as the ruler of a dusty village. He knows perfectly about the power that the book has in order to bend the people to his will. What makes the movie more unique is the way that the twins, Allen and Albert Hughes made some comic book scenes when Eliâ €™s battle showed entirely in silhouette. The movie has an interesting sunburn browns and pale blues that creates a dry and dusty world under a merciless sky. Being a post-apocalyptic movie it has some biblical references in the book of genesis, psalms and revelations in some scene. In addition some scenes can also be referred to Moses when he was going to the Promised Land, and God sustained his people. In comparison with Jesus, his mission was to â€Å"be the one who save the new generation†. Another aspects of the movie are irony and personification; an example of irony was when Eli gives the mouse a piece of roasted cat. And an example of personification was at the end when Eli arrives to the West and the color change more vivid meaning the end of an era. Allen and Albert Hughes have not shot a film since 2001 with the movie â€Å"From Helen†. Both movies are violent and have bloody action scenes. On the other hand, it was wonderful to see two powerful actors on the same screenplay.