Sociology 3357F/G Lecture Notes - Lecture 11: Advance-Fee Scam, Foreign Exchange Fraud, Bernard Madoff
7 May 2015
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Document Summary
Crime and economic system: the economic system includes banks, investment companies, stock markets across the world, commodity markets, and other exchanges/markets where individuals are able to make investments, purchase raw materials and secure goods. Investment fraud occurs when investments made by consumers are managed or influenced fraudulently by stockbrokers or other officials and economic systems: securities and commodities fraud is a broad concept capturing the range of behaviors designed to rip off. Ponzi and pyramid schemes: peace scheme scam investors by paying them from future investors payments into the offender scheme, pyramid schemes recruit individuals by promising them profits from getting others to invest, whereas. Ponzi schemes do not require participants to recruit investors: charles ponzi: convinced investors to invest in an international postage stamp program, he paid off early investors the funds contributed by new investors. Investors were receiving positive returns on their investments. Madoff was extremely secretive in sharing information about investors accounts.
