What is a Ponzi scheme? Give an example of a famous Ponzi scheme and the result of the scheme.
What will be an ideal response?
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many of these schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. One of the most famous recent cases was a scheme pulled off by Bernard Madoff. His firm, Madoff Investments, became one of Wall Street's largest "specialist" trading firms dedicated to investment management and advice. At first, Madoff promised and delivered healthy returns, helping draw in a constant flow of investors. However, when the market crashed, people wanted their money back and found out that there was none available. Madoff had not invested any of the money he had taken from investors but instead deposited the money in various banks, using the interest and principal to pay off investors when they wanted to take money out of their accounts. He convinced many to keep their profits in the account rather than ask for a distribution. Madoff's Ponzi scheme has been estimated to cost his clients $65 billion. On March 12, 2009, he pleaded guilty to an 11-count criminal complaint and was sentenced to 150 years in prison.
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When administering a drug in a time-release form, a large dose is given initially to enable the drug effect to be felt;
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Determinate sentences may encourage convicted offenders to focus upon rehabilitation.
Answer the following statement true (T) or false (F)
What type of crime is generally handled by major trial courts?
a. misdemeanor crimes b. violations c. felony crimes d. all crimes