Embezzlement cas

...

Solution:

Obviously, Joe has to immediately freeze the account money or else his employee may continue to steal money. And in the future, he may want to require two signatures on checks to make it more difficult for people to embezzle the organization's money.

---------------------------------------------------------------

Famous Cases of embezzlement

ENRON:

The ENRON Scandal is considered to be one of the most notorious within American history; an ENRON scandal summary of events is considered by many historians and economists alike to have been an unofficial blueprint for a case study on White Collar Crime. By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of ENRON, the executives of ENRON embezzled funds funneling in from investments while reporting fraudulent earnings to those investors; this not only proliferated more investments from current stockholders, but also attracted new investors desiring the enjoy the apparent financial gains enjoyed by the ENRON corporation.

In the year 2000, subsequent to the discovery of the crimes listed in the above ENRON Scandal Summary, ENRON had announced that there was a critical circumstance within California with regard to the supply of Natural Gas. Due to the fact the ENRON was a then-widely respected corporation, the general populace was not wary about the validity of these statements. However, upon retroactive review, many historians and economists suspect that the ENRON executives manufactured this crisis in preparation of the discovery of the fraud they had committed – although the executives of ENRON were enjoying the funds rendered from investments, the corporation itself was approaching bankruptcy. Due to the actions of the ENRON executives, the ENRON Company went bankrupt. The loss sustained by investors exceeded $70 billion. Furthermore, these actions cost both trustees and employees upwards of $2 billion; this total is considered to be a result of misappropriated investments, pension funds, stock options, and savings plans – as a result of the government regulation and the limited liability status of the ENRON Corporation, only a small amount of the money lost was ever returned.

CARLO PONZI:

Carlo Ponzi, famously known as Charles Ponzi, was a criminal with a cunning mind and a slick way with speech. Unfortunately for him, his talents did not keep him out of jail. His name would become permanently associated with a type of investment fraud in which handsome returns are promised from made-up sources and early investors are supposedly compensated with money raised from later ones.

Charles Ponzi was born in Parma, Italy, in 1882. He grew up there and then moved to the United States in November 1903, when he was 21 years old. Ponzi saw many opportunities to pursue, but could not find his "nitch." Over the next 14 years he bounced from city to city, working as a waiter, dishwasher, clerk, and translator of Italian. Then, around 1917 he settled down in Boston where he took a typing job and answered foreign mail. Ponzi worked legitimately for two years until one day he discovered a way to make himself and investors rich. From that day on, Charles pursued for "the gravy train" — beginning a life of lies and scandals. During that time he married a woman named Rose, who stayed by his side through thick and thin. Oh, how the money started coming in. Unfortunately for him, the scandals caught up with him, then his became a life on the run, of trying to avoid jail. On December 26, 1919, Ponzi established a firm called The Security Exchange Company. He boasted a return of 50-percent interest in 90 days, and the world wanted in on it.

Ponzi’s great idea created an instant "feeding frenzy," and within a few short months, lines formed outside his School Street office door. Thousands of people purchased so-called Ponzi promissory notes at values from $10 to $50,000. The average investment was estimated to be around $325. Ponzi and his staff brought in a million dollars per week. Desk drawers, file cabinets, closet space, and virtually any extra storage area were filled with investors' hard-earned cash. Ponzi, who swindled the gullible out of millions by 1920, invented what came to be known as a Ponzi Scheme, a scam in which early investors are paid with money from new investors (similar to today's "pyramid scheme"). The con game had been around for years, perhaps centuries. But Ponzi played it on such a grand scale, with such flair, and in full view of the media and the world, that he earned a prominent place in criminal history.

Madoff

Madoff earned his bachelor's degree in political science from Hofstra in 1960 and enrolled at Brooklyn Law School, but he didn't last long in that endeavor; that year, using the $5,000 he saved from his lifeguarding job and a side gig installing sprinkler systems, as well as an additional $50,000 borrowed from his in-laws, he and Ruth founded an investment firm called Bernard L. Madoff Investment Securities, LLC. He is one of the major investment firms on Wall Street. Madoff was active in the National Association of Securities Dealers (NASD), an organization of the stockbrokers of the fellowship. His company was one of the top five companies in the development of Nasdaq Madoff which was from 1990 to 1993 the president. He appeared as an innovator in electronic trading. However, Madoff became famous for a very different reason on December 11, 2008. The day before, the investor informed his sons that he planned to give out several million dollars in bonuses earlier than scheduled, and they demanded to know where the money was coming from. Madoff then admitted that a branch of his firm was actually an elaborate Ponzi scheme. Madoff's sons reported their father to federal authorities, and the next day Madoff was arrested and charged with securities fraud. Madoff reportedly admitted to investigators that he had lost $50 billion of his investors' money, and on March 12, 2009, he pleaded guilty to 11 felony counts: securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC) and theft from an employee benefit plan. Prosecutors said $170 billion moved through the principal Madoff account over decades, and that before his arrest the firm's statements showed a total of $65 billion in accounts. On June 29,