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GOVERNANCE

1. Bernard Madoff was occasionally referred to as "T-Bill Bernie" because his investment scheme promised consistent returns that mirrored low-risk government treasury bills. 2. Whether an individual was wealthy or working class prior to committing a crime does not determine if the crime was more or less unethical. The exploitation of others and harm caused makes an action unethical. 3. Ponzi schemes involve using money from new investors to pay previous investors, with the promise of high returns, until the scheme collapses when no new investors can be found.

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1K views2 pages

GOVERNANCE

1. Bernard Madoff was occasionally referred to as "T-Bill Bernie" because his investment scheme promised consistent returns that mirrored low-risk government treasury bills. 2. Whether an individual was wealthy or working class prior to committing a crime does not determine if the crime was more or less unethical. The exploitation of others and harm caused makes an action unethical. 3. Ponzi schemes involve using money from new investors to pay previous investors, with the promise of high returns, until the scheme collapses when no new investors can be found.

Uploaded by

Nour Aira Nao
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Nao, Aira Nor Hapsa January 22, 2018; Mngt.

221n (9:30-10:30)
Usman, Suharto
Ampan, Almirah

1.) Why was Madoff occasionally referred to as “T-Bill Bernie”?


Bernard Madoff every so often called "T-Bill Bernie" in light of the fact that his guaranteed
relentless returns of venture that mirrors r a similar security as putting resources into government-
supported treasury bills. T-Bills is the most secure protections since it is ensured by the legislature
itself .

2. Charles Ponzi was a working-class Italian immigrant who was eager to find success in America.
Bernard Madoff was already a multi-millionaire before he started his scheme. Does that make
one more unethical than the other? Why or why not?
The reason of where you did a crime or the root cause where you began the wrongdoing isn't a
premise to consider if the action you've taken is increasingly exploitative or not. For whatever
length of time that you exploited somebody and made damage or misfortune the other party with
the plan of doing so is now considered as unethical.
3. Explain how Ponzi-scheme works.
Ponzi plans are a sort of fraudulent business model which work on the "taking from one to give to
another" With the guarantee of big returns as lure for a new investors, the fraudster takes in cash
from new financial specialists and utilize it to take care of the prior speculators until any longer
newcomers can't be found and the entirety Schemes falls, with the new recruit investors and they
lose everything.

4. In the case of the Philippines, do you consider the Bequest Bank and AG Share cases as the
same as Ponzi scheme? Why or why not?
They are not the same but rather some way or another there is a few similarities. In the Ponzi
scheme they keep on welcoming newly recruited investors so that they can able pay out the
previous investors. While in the Bequest bank and AG share cases they utilize an imaginary
credits on various ledgers and they are snaffling up shares without uncovering to the trade. The
two of them did fake represent their individual gains.
5. Is the strategy adopted by Mr. Julian B. Damondong similar with that of Charles Ponzi and that
of Bernard Madoff? What similarities can you provide? What are the strategies adopted which
made it different from that of the two schemes?
Julian Damondong also use a similar method of schemes that Ponzi and Madoff used. They are
also about financial scandal scheme like what Pozi and Madoff did, they use their investor's
money that are being utilized for their business and guarantee to return in a higher sum. They are
distinctive in a manner how to persuaded somebody to put resources into their business and how
to restore the put cash like in ponzi's plan they guarantee to return as high as 520% for them to
successfully lure more investors in their scheme.
6.) In the case of the Ample Group,what are the manipulations adopted by Mr. Marko Ripot to
persuade investors to put in money to business?
Mr. Marko Ripot adopted these manipulations to persuade investors to put money to the business.
These are, Obtaining shares in Ample Group without disclosing it to the exchange. Conspiring at
least eight stockbrocking firms to fake transactions and thus inflate volumes in Ample Group
shares, Insider trading or the illegal practice of trading on the stock exchange to one's advantage
through having access to confidential information.
7.) Which schemes served as a platform for perpetrating both Ample Group and the Bequest Bank
fiascos?
The scheme that served as a platform for both the Ample Group and Bequest Bank Fiasco is the
Ponzi scheme because they have the same way of luring the investors.

8.) Did the board of both corporations acted in the interest of their shareholder and the public in
general?
No, Instead they acted for their self interest. The Shareholder's and the Public have been
deceived by the board of both corporations by saying that it will grow their business more and will
get higher profits but in reality, the Board of Directors are doing it for their own personal gain.
9.) In assessing the structure of both companies, are these companies in consonance with the
corporate governance principles as presented in the three models?
No. Since both Ample Group and Bequest Bank suffered from different form of financial Scandal,
their structure will never be in consonance with the corporate governance principles presented in
the three model because just in the regulatory framework, theirs is already illegal, which in the
corporate governance structure of the three models must be legal. And also the persons
composing these corporations do not give a sound, integrated and a quality information to the
public hence, they scammed people out of billions of money for their personal gain which is a
clear fact not a structure or characteristic of a good corporate governance.
10. The SEC plays an important role in policing the corporations. In what way is SEC remiss in
these two cases? Elaborate.
The SEC is responsible for regulating the securities industry in the Philippines. Also, the SEC
maintains the country's company register which lists all organizations registered in specific
jurisdiction. They could've been stricter in implementing other regulations and have every
business monitored and evaluated from time to time.

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