Ponzis and Pyramids

Abstract

The article discusses the Ponzi scheme, a special type of pyramid operation. Bernard L. Madoff, Patrick R. Bennett, John McNamara, and Nicholas Cosmo are the persons accused of operating a Ponzi scheme, one that promises more-than-average returns that are paid for by new investors. Certified public accountants (CPAs) as auditors, should reportedly be aware of probable Ponzi schemes during an audit, according to Allan Brown, director of internal audit for community and technical colleges for the State of Louisiana.