The ponzi scheme was the biggest american history

Case Study 13: Ponzi Scheme or Accounting Malpractice: Beware of Cowboys Wearing the White Hats

1. A Ponzi scheme is a common type of financial fraud that has occurred numerous times throughout history. The scheme is named after Charles Ponzi, because he was notorious for using the technique. The Ponzi scheme is financial investment fraud where a firm/company/individual pays investors returns from money received from other investors, rather than the profit earned from actual operations. The factor that pulls investors into this scheme is that operators usually offer high, short-term returns.

5. Based off my answer above in question 3 and SEC Rule 102, I believe the SEC accountant should be held responsible for her behavior and her statements. As a CPA and a professional, she should know how to behave in court and should be fully aware of SEC guidances.