The Case for the Forensic Accountant
An Accountant Looks at Ponzi Schemes
By Sareena Sawhney
Suddenly, Ponzi schemes seem to be everywhere.
Credit for the renewed attention to this classic financial fraud is of course due in large measure to Bernard Madoff, the now-convicted financier who defrauded investors of an estimated $65 billion. Madoff’s widely publicized crime was a classic Ponzi – he took on investor funds, diverted them to finance his own lifestyle, falsified his clients’ financial statements to show investment positions when there weren’t any, then used new investments to pay “dividends” and “interest” to past investors. It was the largest and most dramatic example of a Ponzi scheme to date.
Ponzi Schemes are Widespread in Financial Downturns
But it’s not the only one garnering attention. In fact, Ponzi schemes are gaining more widespread attention and being investigated by the FBI. READ MORE →
