Collapse of very large and influential companies

After significant fraudulent activities that led to the collapse of very large and influential companies, such as Enron, the USA introduced changes in regulations that impacted on the way organisations managed their firms. However even after these were implemented fraud was not eradicated. Indeed Allen Stanford became the second largest Ponzi scheme to be uncovered in the USA in 2009 and the case is still ongoing.Answer the following:
1. Give an explanation of how a Ponzi scheme works including why they all eventually collapse. 5 marks 2. You are required to investigate the case of Allen Stamford and your findings should include the following: • The background to Allen Stanford, the business he founded and the investments he offered. • How he was able to grow his business unchallenged by the regulatory authorities. • Provide an explanation of how the culture inside the business enabled Stanford to continue with the fraudulent activities for so long. • What eventually brought about Allen Stanford’s conviction? 70 marks 3. Although Stanford was convicted and imprisoned the case continues. Reflect on the claims he is making and comment on whether, in your opinion, he is truly guilty. 25 marks

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