The Bernie Madoff Scandal Case Study Example | Topics and Well Written Essays - 1500 words

The Bernie Madoff Scandal - Case Study Example This paper illustrates that the Bernie Madoff Scandal was discovered by one of the Modoffs’ son when Madoff decided to pay up to $7 billion redemptions or bonuses upfront after showing the inability to pay investors. The sons demanded to know the source of the funds and father admitted that his asset management arm of his firm was actually being operated as a Ponzi scheme in which new investments covered returns from the existing or earlier investments and personal wealth. Upon discovering the fraud, the son did what the unexpected and took up the matter with the federal authorities leading to the arrest of Madoff. Madoff revealed that he had run the scheme for approximately 20 years since the early 1990s. It was discovered that over the years Mr. Madoff was actually using money from new investors to pay returns to old investors creating a pyramid resembling a previous scheme named after Charles Ponzi. Although Mr. Madoff was operating within hedge fund industry, his fund was not a hedge fund, but endowments and foundations after the hedge funds invested heavily with his company. Madoff’s strategy to pay old investors with funds obtained from new investors enables his firm to satisfy the high returns promised to investors despite failure by the old investments to generate any returns. Investors expected that their funds were invested elsewhere by the company to generate returns, but Madoff deposited all the funds in his business account at Chase Manhattan Bank. In order to hide the reality in his company, he creatively came up with false transactions involving falsified SEC filing with the Securities and Exchange Commission and foreign transfers year after year. Modoff’s fraud dealings also most surfaced in 1999 when Harry Markopolos, a financial analyst-whistleblower alerted the securities and commission that his gains were impractical in the financial situation.

Home Schooling and Traditional Schooling Essay Example | Topics and Well Written Essays - 500 words

Home Schooling and Traditional Schooling - Essay Example As a result, there have been debates whether it is a good idea to home-school children or if it would be better to send them to traditional schools. One of the arguments presented against homeschooling is that there is no guarantee of quality education because not all parents and tutors have the proper training to teach. Moreover, the lessons that might be presented to the student may not be on the same level of the nationally accepted curriculum such as those taught in school (kidshealth.org). On the other hand, the same argument can also be presented in the traditional school because not all licensed teachers really have the skill of effectively teaching students. In relation to the quality of education given to students, homeschooling prides itself on an intensive program that could be designed for the student depending on the student’s learning speed. The one to one teaching and learning experience can be a catalyst for quantity learning. In contrast to this matter, traditional schools have set schedules that need to be followed so that the quality of learning is greatly affected (Baker & kidshealth.org). For instance, slow learners are often left behind while fast learners get bored with the lessons that are repeatedly discussed for those who have difficulty following the lesson. Another problem that is said of homeschooling is the absence or limited access to the development of social skills in students. Home-schools may organize groups for their children in order to compensate for the socialization they miss while learning alone at home and join group activities such as tours and sports but it is so limited in contrast to the exposures of students in traditional schools. Moreover, the facilities used in homeschooling are far limited than in traditional schools.