There are many ways to trick people into losing their money, but have you ever thought about what are the biggest financial scandals in history? Believe it or not there is a lot of ways to steal money from people.
Scandals in the corporate world, tend to have a significant impact on the economy as a whole, and while most companies are destined to fail at some point. One of the biggest financial scandals in history is the Ponzi Scheme. Charles Ponzi has an entire scheme based on his name. He fooled lots of investors by getting money that, according to him, would have high returns when converted to another country’s currency. That’s not the most expensive fraud of all time, but the fact that people forever after named this kind of scheme for him puts him in the running..Another one is Edward Strafaci. Strafaci, who was working as executive vice president of Lipper Holdings, informed investors that he had their money in two hedge funds that were growing annually. Manhattan Capital Management was founded in 1996 by Michael Berger. It eventually lost hundreds of millions of dollars. Losses amounted to almost $400 million. Most of the financial scandals are related to bank frauds. The reason is because banks have lots of money. Institutional fraud can consist of various fraud and corruption crimes, such as: money laundering, insider trading, bribing, racketeering, loan sharking, insurance scams, evidence destruction. Banks frauds are the moss related to the biggest financial scandals in history. Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. Fraudsters may seek access to facilities such as mailrooms, post offices, offices of a tax authority, a corporate payroll or a social or veterans’ benefit office, which process cheques in large numbers. The fraudsters then may open bank accounts under assumed names and deposit the cheques.
If you want to see what are the biggest financial scandals in history, check Insider Monkey’s list of 11 Biggest Financial Scandals in History and find out which tricks people were used to take the money.