Catherine Carey and John K. Webb
The purpose of this study is to elaborate on how schemers build and maintain trust essential for financial fraud that persists over many years. A Ponzi scheme is a form of…
Abstract
Purpose
The purpose of this study is to elaborate on how schemers build and maintain trust essential for financial fraud that persists over many years. A Ponzi scheme is a form of financial fraud that involves repeated interaction with an increasingly large number of individuals over a long period time. This type of fraud involves the building and maintenance of each individual’s trust. All Ponzi schemes come to a dramatic conclusion. Either the schemer defaults on payments, or someone gets suspicious and the scheme is uncovered. Understanding how schemers build and maintain trust may help prevent or uncover the fraud earlier, limiting financial devastation endured by unsuspecting investors, as well as externalities inflicted on the financial system as investors lose trust.
Design/methodology/approach
This study combines an understanding of trust accumulation from multiple disciplines in the existing literature to build a comprehensive model of trust creation and maintenance in Ponzi schemes.
Findings
This study finds that key characteristics of both the trustor and trustee contribute to long term financial arrangements. Schemers prey on individuals with specific characteristics that indicate they are more trusting. Trusting individuals are less likely to conduct due diligence to detect fraud. Prevention and detection of fraud are made more difficult by convincing, yet false, mimicry used by schemers to signal trustworthiness.
Originality/value
Bringing together multiple views on trust allows creation of a comprehensive model of trust that captures key characteristics of unsuspecting investors and schemers who prey on them in financial fraud.
Details
Keywords
Jon Drabenstott, Marvin E. Pollard, Sara C. Heitshu, John Webb and Michael Madden
These studies provide a cross‐section of current library automation activity. They illustrate some of the forces acting on libraries, the growth and development of the library…
Abstract
These studies provide a cross‐section of current library automation activity. They illustrate some of the forces acting on libraries, the growth and development of the library marketplace, and the increasing complexity and interrelationships of automated systems. Above all, they lead to an appreciation of just how daunting automation projects can be, and how profoundly these new systems are changing libraries. These contributors have administered projects in which many successes have been realized in often difficult, but not atypical, circumstances.
In the US minimum wages were initially enacted by individual states, beginning with the Commonwealth of Massachusetts in 1912. These laws were modeled on legislation enacted over…
Abstract
In the US minimum wages were initially enacted by individual states, beginning with the Commonwealth of Massachusetts in 1912. These laws were modeled on legislation enacted over the previous two decades in Australia, New Zealand, and England (Fisher, 1926, chap. 8; Hammond, 1915, 1913; Hobson, 1915; Hart, 1994, chaps. 2 & 3; Morris, 1986). From 1912 to 1923, the legislatures of 16 states, Puerto Rico, and the District of Columbia passed minimum wage legislation, although not all of them were operational by the end of this period (Brandeis, 1935, p. 501; Clark, 1921; Millis & Montgomery, 1938, chap. 6; Morris, 1930, chap. 1).
When former Assistant Oregon State Librarian (now Iowa State Librarian) Shirley George talked about the Oregon State Library's pioneering OPAC system, she began with a story about…
Abstract
When former Assistant Oregon State Librarian (now Iowa State Librarian) Shirley George talked about the Oregon State Library's pioneering OPAC system, she began with a story about another Oregon State librarian, a spunky, turn‐of‐the‐century innovator named Cornelia Marvin. According to George, Cornelia was energetic, determined, and very much committed to getting information to the public using any means available.
According to Truth the War Office has selected Mr. C. C. DUNCAN, F.I.C., the Public Analyst for the County of Worcester, for a special post, in which “ he will be responsible for…
Abstract
According to Truth the War Office has selected Mr. C. C. DUNCAN, F.I.C., the Public Analyst for the County of Worcester, for a special post, in which “ he will be responsible for the examination of the water supply for the troops.” “It might be supposed,” our contemporary observes, “that the services of this scientific expert would be worth at least the pay of a Captain. The War Office thinks differently. It is giving Mr. Duncan the pay of a private soldier, a piece of parsimony in no wise excused by the fact that the difference between his military pay and his regular salary will be made up by the Worcestershire County Council.” It appears that MR. DUNCAN has been selected for the post in question on the recommendation of a body described by Truth as “ The Institute of Analysts.” As no such body exists we presume that either the Institute of Chemistry or the cumbrously‐named “ Society of Public Analysts and Other Analytical Chemists” is referred to. It would be interesting to know what the Councils of either or both of these concerns have got to say about the treatment of this member of the profession which they are supposed to represent and whose dignity and interests they are supposed to maintain. The monstrous advertisement issued by the Woolwich Arsenal authorities about a year ago in which scientific chemists with University degrees were invited to apply for appointments at the munificent remuneration of £2 per week is a sufficient illustration of the value put upon scientific attainments by Government Departments in this country. But even this example of fatuous ignorance and inane parsimony has been eclipsed by the present arrangements for the employment of scientific chemists in the Royal Engineers, in which they are invited to enlist with the rank of Corporal and with Corporal's pay and “allowances.” The sulphuric acid scandal recently exposed by The Globe makes it once more abundantly clear that where scientific advice even of an elementary kind is needed no attempt is made to obtain reliable guidance. The wrong people are invariably applied to for advice and the wrong men are appointed to fill responsible posts. The following remarks appear in The Globe of September 23rd :—“We have evidence of the incompetence of the High Explosives Department which thought it fitting to appoint as the comptroller of the shipment of oleum” (i.e., a form of sulphuric acid shipped from America) “a young man, wholly inexperienced, at a handsome salary, his only qualification apparently being that he was the son of his father. This young man was completely ignorant of the properties of oleum. His first introduction to the acid was when he was called upon to advise as to the best method of shipment.” According to the facts stated in The Globe the result of this bungling has been a loss of some hundreds of thousands of pounds to the taxpayers of this country.
John C. Camillus, Richard T. Sessions and Ron Webb
In today's highly dynamic, unpredictably changing business environment, traditional strategic‐planning approaches are of doubtful value. In 1995, the American Productivity &…
Abstract
In today's highly dynamic, unpredictably changing business environment, traditional strategic‐planning approaches are of doubtful value. In 1995, the American Productivity & Quality Center (APQC) began a series of consortium benchmarking studies on strategic planning. The first study, completed in 1996, identified several innovative practices and surfaced challenges faced by companies in highly dynamic business environments. Consequently, strategic planning in fast‐cycle environments became the focus of the second study, “Reinventing Strategic Planning for a Dynamic Environment,” which was completed in February 1997.
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management…
Abstract
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.