Question

The cases of Enron and Bernard Madoff go beyond a question of ethics because in both cases ________.

Answer 1

Answer:

Explanation:

The cases of Enron and Bernard Madoff is not a case of ethics but outright fraud

Bernard L. Madoff Investment Securities LLC was a Wall Street investment firm founded by Madoff. He tricked investors out of $64.8 billion through the largest Ponzi scheme in history. Bernie Madoff, his accountant, David Friehling, and Frank DiPascalli. Investors were paid returns out of their own money or that of other investors rather than from profits.

Enron a Houston-based commodities, energy and service corporation. Shareholders lost $74 billion, thousands of employees and investors lost their retirement accounts, and many employees lost their jobs. CEO Jeff Skilling and former CEO Ken Lay kept huge debts off balance sheets.

Answer 2

Answer:

E.  Laws were clearly broken

Explanation:

The cases of Enron and Madoff goes beyond ethics, because both of them are fully aware of their unethical behavior.

As for Madoff, he knowingly accept large sum of money from his unsuspecting investors, with the knowledge that he is not going to use their money for any legitimate investment, rather than a ponzi scheme which is considered as illegal. Bernie Madoff, was only conducting illegal business knowingly, by defrauding his clients for about $65 billion. He later pleaded guilty to 11 charges, some of which are:

Securities fraud, mail fraud, wire fraud, money laundering, theft from an employee benefit plan etc.

As for Enron, the company was also unethically practicing accounting fraud to cover for their illegal ways of feeding off from their unsuspecting stakeholders who had invested a huge amount of money of about $74 billions into the scheme.