4 Financial Scandal

“FINMAN2 Research Incentive # 2

FINMAN2 K37 TERM 1, S.Y. 2012-2013

Bernardo, Mark Ebenezer A.

Espino, Santiago Luis B.

Lapuz, Ma. Concepcion N.

Palad, Ma. Charmaine Angela M.

Peñas, Angelica Kristina A.

Reyes, Dick Laurence, V.

Sy, Diana Faye C.

Tiu, Jeushl Wensh, A

Villanueva, Maureen Janine L.

Viril, Fatima Leigh, M.

| Nicholas Leeson | Jerome Kerviel | Bernard Madoff | Allen standford |

Firm connected with at the time of scandal | Barings Bank | Société Générale | National Association of Securities Dealers Automated Quotations | Stanford Group of Companies |

Amount of Losses | $ 1.3 Billion | € 4.7 Billion ($6.71 Billion) | $ 18 Billion | $ 7 Billion |

Summary of Scandal | The company didn’t know that he had an error account where he covered his mounting Losses. He tried to recover his losses by buying 20,000 future contracts in order to make the market move. He lost Barings from these trades. | He Was convicted of unauthorized trading activities at the bank, breach of trust, forgery by manipulating the computer system for rogue bets and used the investors’ money for gambling until the financial markets dipped. | He pled guilty to 11 felony counts; securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC), and theft from an employee benefit plan | He used the money from investors who bought certificates of deposit from his bank to fund a string of failed business, Bribe regulators and pay for a lavish lifestyle. |

Penalty Served | 6 years and 6months in Prison | 5 years in prison | 150 years in prison | 110 years in prison |

Where is He now? | After stepping down as CEO of Galway United FC in 2011, Nicholas Leeson presently goes around the globe to attend conferences and give speeches. | He is now serving 5 years in prison | Metropolitan Correctional Center serving his penalty | Coleman...