2008 and 2009 will be remembered for bear markets, a global credit crunch and some of the largest investment scams ever. But these scams are nothing new; from Charles Ponzi to Bernard Madoff to Sir R. Allen Stanford, they've been repeated throughout history, and there will certainly be more to come in the future. But the good news is fraudsters often follow the same basic playbook. Learn the playbook and know how to ask the right questions and financial fraud can be easy to detect and avoid. Sometimes the return of your money is simply a lot more important than the return on your money!
In 2007, when the world was staring into the teeth of the biggest economic catastrophe in three generations, very few economists had any idea there was any trouble lurking on the horizon. Three years into the mess, economists now offer remedies that strike most people as frankly ridiculous. We are told
In recent years, corporations of all sizes and orientations have become more sensitive to social issues and stakeholder concerns, and they are collectively striving to become better corporate citizens (in some cases, urged on by shareholder pressure or government regulations). The best practices in corporate sustainability are no longer the exclusive
Incentives are the cornerstone of modern life. And understanding them or ferreting them out is the key to solving just about any riddle. It isn't just the boldface names inside-trading CEOs and pill-popping ballplayers and perk-abusing politicians¾who cheat. It is the waitress who pockets her tips instead of pooling them. It
On the heels of the Enron trial, there are many lessons to be learned from the barrage of fraud hammering corporate America -- including how to spot signs of future impropriety. In a gripping and intriguing read, BUSINESS FAIRY TALES uses real-world scandals to illustrate the top twenty most common methods
Arresting every fraudster and punishing him are very expensive and require a lot of unavailable human and financial resources. The damaging effects of fraud would not be reversed, nor would lost assets or reputations be restored when fraud is discovered. It is economically more feasible to prevent fraud than to detect