Ponzi schemes and California pyramids Ponzi schemes and Home-Stake

Abstract

In this paper, we investigate the cases of accounting and business fraud known as Ponzi schemes. These cases studies have been done several decades ago by Professor Tony Tinker. But, notwithstanding Tinker's warning, some corporations and some corporate executives still believe, they are above the law and are using accounting to mislead shareholders and mismanage the corporate finances. The case of Bernard Madoff, a CPA, is an example.