Would You Have Made a Different Decision? If Yes, What Would It Have Been and Why? If Not Why?

Would you have made a different decision? If yes, what would it have been and why? If not why?

        If I am the manager of the company I will make a different decision and will not start the Ponzi scheme as it is not only involve in fraud but also it perversely inclined with the codes of ethic. Before going further into the reasons why I am disagree with the decision of the company to start a Ponzi scheme or generally known as pyramid scheme, let us go into how a person named Bernard Lawrence Madoff can influence people to invest in his business later be known as ‘hedge fund’. Madoff is a person who skilled in influencing other people to put their saving in his business. The position that he was held once as the chairman of NASDAQ also give a greater impact for people to put their trust in Madoff’s hedge fund.

In my opinion to start an investment fund is a big idea and it is what people who invested in the Madoff’s fund think. Madoff give his clients wonderful report that shows that they are richer than the month before and for this reason, this is why Madoff’s hedge fund is seem very successful. This hedge fund also successful as it promise to give high return to the investors whether or not the economy doing well or not. Madoff experienced in the investment management as he also managed to be one of the NASDAQ chairman during 1991. Hence, with his ability and experience, he can come with an investment strategy that is legal and just for all the investors.

The decision I will made is to start a real investment fund that can give higher return to the investors as it followed by the high risk. This investment planning actually real as it was founded by Harry Markopolos who is the leading investigator on bringing Madoff down back in 1999, who actually propose this idea to some potential investors in order to against and giving aware of Madoff scam. Unfortunately nobody want to enter this investment fund because it only giving high return by facing high risk. Different with the Madoff’s hedge fund where they can having high return whether the economy is growing or diminishing.

First and foremost, the reason why I have different opinion in starting the hedge fund is incurred with fraud. Fraud is define as the crime of cheating in order to get money or goods illegally (Oxford Advance Dictionary). Bernard Madoff had liabilities of approximately by US$50 billon according to the federal charges. This big amount was collected from many people from many businesses from big to small businesses even people who do not have any knowledge about the investment also infected by this fund as they think that it can increase their savings.

Next, the hedge fund that been running by Bernard Madoff is unethical because it betray the clients’ trust. As this hedge fund not only effected big company but also ordinary people who has their savings in this fund as they think their saving will grow by the time they retired. One of the victim has lost her life savings when she sold one of their house and transferred the money into the hedge fund. Hence people will no longer having their trust on the investment system and it can occasionally lead to the collapse of the economic.