Bernie Madoff's Ponzi Scheme Swindled About $65 Million from Customers

question 13

Multiple Choice

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm.Enron and WorldCom participated in inappropriate accounting methods.According to the Making Ethical Decisions box,"Cost of Corruption":

• A) The notion that the financial system is complicated and difficult to understand often perpetuates these crimes.
• B) Madoff was convicted for his crime because he was a "lone ranger" in white-collar crime,whereas Enron and WorldCom were part of the "too big to fail" corporations.The government was compelled to protect them due to the fact that too many people would lose their jobs.
• C) Ponzi schemes are not illegal.This was a case of "buyer beware." The investor must take the majority of the responsibility for not performing due diligence prior to investing with Madoff.
• D) Enron's and WorldCom's executives were acquitted of crime because they were using generally accepted accounting principles,and no whistleblowers came forward to attest to any wrongdoing.

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