In recent years there have been several companies that have committed or have been suspicious of committing fraud. “Fraud can inflict significant damage at community, organizational or individual level, and the potential consequences of fraud for organizations can be strategic, legal, financial or operational. Therefore, it must be an important issue for organizations.” (Lanham, Weinberg, Brown & Ryan 1987). Some of the major cases involving fraud include ENRON Corporation, and the Bernie Madoff case. First, we will discuss the Madoff case, bernie Madoff was arrested in December 2008 under suspicion of fraud. Madoff founded a Wall Street firm in 1960 called Bernie L. Madoff investments LLC, where he was the chairman up until his arrest. The firm was one of the top market maker businesses of Wall Street. He was also the former non-executive chairman of the NASDAQ stock market. He later admitted after being under investigation, to being the operator of a Ponzi scheme that is considered to be the…show more content… He was taking money from investors and charities, and promising them huge returns in exchange. Having access to do this came from knowing the system and being the chairman of Nasdaq, which gave him an advantage. When the scandal was revealed, statements from investors to Madoff’s clients were almost a total of $65 billion. Since this has been under investigation it was actually only around $17.3 billion that was legitimate. “On March 12, 2009, Bernie Madoff pleaded guilty to all 11 federal felony charges against him.” (topics.nytimes.com). He faced several different charges including money laundering, security fraud, and perjury. Consequently he was faced with 150 years in prison, and five of his employees were found guilty for their part in the Ponzi scheme. Madoffs morals and ethics got lost in his greed for money and
