Running head: THESIS STATEMENT 1 Thesis Statement Name Institution THESIS STATEMENT 2 Thesis Statement Fraud is a white collar crime that has the potential to hurt a considerable number of people at the same time. The perpetrators can commit it both within and across national jurisdictional boundaries. It can take many forms. However, this paper will focus on pyramid schemes. They are also known as Ponzi Schemes. The U.S. Securities and Exchange Commission is the body that is primarily in charge of detecting and curtailing Ponzi schemes. The SEC identifies Ponzi schemes by determining if the organization is using recruit funds to pay off longer-standing members. The theory that bolsters this line of thinking is the Modern Portfolio Theory. It states that one can manage their risk by analyzing the returns in a venture. Ponzi schemes operate by ignoring the fact that there are market risks, or even entirely avoiding investment. Donald Cressey further marries commerce to criminal justice by saying that people ought to be proportionately punished for their wrongdoing. Preventing the further occurrence of Ponzi schemes is difficult since these organizations are nifty. They are so shifty that it is impossible for law enforcement agencies to determine whether an entity is one off the bat. Therefore, there must be a more wholesome way of dealing with them, since they are essentially pyramid schemes. That involves the participation of every investor in the market. There are two ways that this can happen. The first is through prevention by informing the public. An enlightened investor is less likely to fall victim to an unscrupulous Ponzi scheme proposer. Furthermore, the SEC should be more responsive to queries on company value chains from the public. THESIS STATEMENT 3 References Cressey, D. R. (1972). Criminal organization: its elementary forms. New York: Harper & Row. Markowitz, H. M. (2008). Portfolio selection: efficient diversification of investments. Malden, MA: Blackwell. doi:1557861080 SEC. “SEC Enforcement Actions Against Ponzi Schemes.” SEC Enforcement Actions Against Ponzi Schemes, U.S. Securities and Exchange Commission, 1 Oct. 2017, www.sec.gov/spotlight/enf-actions-ponzi.shtml
Purchase answer to see full attachment