Unethical Conduct
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Unethical Conduct
Daniel C. Ushman
Rasmussen College
Author Note
This research is being on July 14, 2010 for Professor Ulysses Weakley’s B234/BUL2241 Section 06 Business Law course by Daniel C. Ushman.
Unethical Conduct
Unethical business practices are as old as the business world itself. Deception, stealing and fraud are some of the most common forms of unethical business conduct. The American public relies on the government to create laws to protect them from scams and schemes. People are not perfect and can become victims of professional swindlers, before they realize what has happened. Get rich quick schemes spread as the desire for wealth continues to flourish. Investors can be blinded by their own greed.
Unethical business entities have been around since people began trading livestock and crops for goods and services. Over time, business owners have taken financial advantage of investors, suppliers, employees, and customers too numerous to mention. Some of these unscrupulous individuals have made the history books.
In 1920, Charles Ponzi, an Italian immigrant, began advertising that he could make a 50% return for investors in only 45 days. Incredibly, Ponzi began taking in money from all over New England and New Jersey. By July of 1920, he was making millions as people mortgaged their homes and invested their life savings. As with all frauds, he was discovered to have a jail record and was indicted on 86 counts of fraud. Some tens of millions of dollars were invested with him (Lenzer, 2008).
The term Ponzi scheme was coined and remains a serious violation in the business community. It is defined as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors” ("What Is a Ponzi," n.d.). This particular scam differs from a Pyramid scheme where participants actively recruit new members in order to make a profit. The Ponzi requires no effort on the part of the investor....
Daniel C. Ushman
Rasmussen College
Author Note
This research is being on July 14, 2010 for Professor Ulysses Weakley’s B234/BUL2241 Section 06 Business Law course by Daniel C. Ushman.
Unethical Conduct
Unethical business practices are as old as the business world itself. Deception, stealing and fraud are some of the most common forms of unethical business conduct. The American public relies on the government to create laws to protect them from scams and schemes. People are not perfect and can become victims of professional swindlers, before they realize what has happened. Get rich quick schemes spread as the desire for wealth continues to flourish. Investors can be blinded by their own greed.
Unethical business entities have been around since people began trading livestock and crops for goods and services. Over time, business owners have taken financial advantage of investors, suppliers, employees, and customers too numerous to mention. Some of these unscrupulous individuals have made the history books.
In 1920, Charles Ponzi, an Italian immigrant, began advertising that he could make a 50% return for investors in only 45 days. Incredibly, Ponzi began taking in money from all over New England and New Jersey. By July of 1920, he was making millions as people mortgaged their homes and invested their life savings. As with all frauds, he was discovered to have a jail record and was indicted on 86 counts of fraud. Some tens of millions of dollars were invested with him (Lenzer, 2008).
The term Ponzi scheme was coined and remains a serious violation in the business community. It is defined as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors” ("What Is a Ponzi," n.d.). This particular scam differs from a Pyramid scheme where participants actively recruit new members in order to make a profit. The Ponzi requires no effort on the part of the investor....