Results for tag: "Ponzi Scheme"

A Ponzi Scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned. It is named after Charles Ponzi, who became notorious for using the scheme in 1920. Accounting is an important part of any Ponzi Scheme. It is used to track the money coming in and out of the scheme, as well as to hide the fraudulent nature of the scheme from investors. Accounting is also used to create false financial statements that make the scheme appear to be legitimate. Some companies that have been involved in Ponzi Schemes include Bernie Madoff Investment Securities, Zeek Rewards, and the Stanford Financial Group. These companies have all been accused of using fraudulent accounting practices to hide the true nature of their operations. Show Less Read more