BF130:Legal and Ethical Considerations for Business-CapstoneProjectPart2

Criminal Law and Business

Description:

Your first client in your new job at the law firm, Mr. James Bond, is going to retire. He saved some moneythathe wants to invest to receive passive income in his retirement. He expects to create an investment portfoliothatwill bring him a high yield income in a short period.

Mr. Bond signed a contract to participate in an investment scheme. According to the contract, Mr. Bond has to buy securities of the value of $100,000. He will be rewarded a monthly income of 5% which will be paid with the funds received from more recent investors.

Read the following 3 articles and then reply to the questionsbelow:

"Securities Fraud Awareness & Prevention Tips"https://www.fbi.gov/stats-services/publications/securities-fraud"Ponzi Scheme"https://www.investopedia.com/terms/p/ponzischeme.asp"How To Avoid Fraud"https://www.sec.gov/reportspubs/investor-publications/investorpubsavoidfraudhtm.html

1.Would you advise your client Mr. Bond to invest in thisscheme?In your own words, explain whyor why not.

2.CanMr. Bondbe sued for a contract breachif he doesnot perform the signed contract? Why or why not?

3.Explain to your client what he has to do in order to secure his money in the future. Provide 3 tips that you consider the most important.

Submit your responsein at least 3 paragraphs