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Ponzi Schemes Revisited
The unraveling of a $50-billion dollar Ponzi scheme allegedly perpetrated by Bernard L. Madoff has brought a new magnitude to an old but hardy scam. Although Ponzi schemes are all too familiar, the size, longevity, and global reach of the alleged Madoff fraud has broken all records. The list of potential victims spans the globe and ranges from individuals who invested their life savings to charities and educational institutions like Yeshiva University.
The basic structure of a Ponzi scheme (one common type is referred to as a “pyramid scheme”) is that the perpetrator entices a group of investors ' typically with the promise of unusually high profits ' who are then paid at least some part of their principal or profits from the deposits of other, later investors. Because of the continuing need to pay investors profits or principal as the scheme progresses, the perpetrator must continue to bring in more and more investors to keep it going. A Ponzi scheme relies on a strong illusion of profitability in order to attract additional victims. Madoff appears to have been a master of this illusion. As long as investors continue to join the scheme and not too many withdraw, the scheme keeps growing and growing. Until it all falls apart.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.