Peregrine Financial Group Inc Finance Essay - Free Essay Example

Peregrine Financial Group inc. known as PFGBest. This company is investing for a long term probability of success for customers, it offering different group of products, technologies and services including futures, forex, futures options, full-service brokerage, precious metals, trader education, and, of course, direct online trading with emphasis the opportunities of lower barrier to entry. This company is one of the largest non-clearing U.S. Futures Commission Merchants, with customers, affiliates and brokerage offices in more than 80 countries. With the article, Russ Wasendorf, Sr., CEO of Peregrine Financial Group, Inc. in Cedar Rapids, Iowa.Monday, Sept. 17, 2012,he was arrested by FBI, judges order that would free the disgraced businessman while he awaits sentencing for a $200 million fraud scheme at his Iowa-based brokerage. Wasendorf admitted to the $200 million fraud that he first confessed in a note found on him after an unsuccessful suicide attempt in July. Wasendorf likely will face a recommended minimum sentence of at least 24 years in prison at his sentencing hearing, which was not immediately scheduled. The guilty plea marks the latest step in the stunning downfall of a businessman and philanthropist who was well-known in financial circles and a major player in Cedar Falls. Wasendorf built over decades to pay back the 24,000 customers who are missing money. The receiver has already gotten rid of Wasendorfs corporate jet, and is trying to sell the company that published Wasendorfs books and magazines on investing and also sell Wasendorfs homes, his 4,000-bottle wine collection, the upscale restaurant he owned in Cedar Falls, and the $20 million company headquarters that stood as a symbol of Wasendorfs home-grown success with a firm he started in an Iowa basement 30 years ago. Stakeholders Analysis Primary stakeholders shareholders The shareholders had trusted by the false information or agent. The shareholders will be facing a significant loss. Wasendorf actually fraud the shareholders and caused the crisis of the investment of the company within 20 years. Wasendorf affected the companys reputation and caused the company had to compensate those who deceived by Wasendorf for all these years which is counted as 24,000 customers and this incident led the official defunct. Primary stakeholders employee Due to the Wasendorf fraud, the company had official defunct because of uncover the loss on the 24,000 of customer. In this case, the employees will be losing the job. Primary stockholders -creditors Besides that, the creditors had trusted by the wrong information, the creditors will be affected and the creditors can only get back 30% to 40% of the funds which was invested for the company. Additional payments are expected but the bankruptcy trustee has warned they will fall short of making customers whole. Secondary stakeholder Investors The investors had trusted the wrong financial information on this company. The investors will affected the investors because was cheated by Wasendoft. The investment which invested on the company was loss because of the company defunct. The investors cant get back the funds and it may be caused some of investors having the cash flow problem or bankrupt. It also caused the investors loss on confidence on investing on other company. The ethical violations By the view of utilitarianism principles, the consequence must benefit to greatest number of people. But the action of Wasendoft was more harm than good to most number of people. The 24000 of investors have been harm by lose their money. Shareholder also been harm by lose their money due to the share price of the company drop after the news of the company CEO Wasendoft fraud break up. It also may influence other people to follow his back step to check and other investors or company. It also will occur more and more problem after the company bankup and it employee losing their job. Such as, thief, investor of the company bankup, economics of the country been affected. But it only benefit Wasendoft by prop up his struggling firms finances. At the conclusion, the harms are more the good so it breads the utilitarianism principles. Based on universal principles, the duty must be justice, right, fairness, honesty and respect. But Wasendofts duty was dishonesty to his investors by cheating their money to generate the company monthly reports for showing the company was holding more than 200 million in customer funds than it actually had. At the same time, his also use the money to personal and other business interests. Continue for formula of humanity of Kants ethical theory as an end in itself ensures that the motivation behind every action must be the good of humanity, but Wasendofts duty was breaking this theory by itself motivation behind the action is bad of humanity. Wasendoft cheating his investors money to his personal use and other business interests. According to the right principle the Peregrine Financial Group CEO Russ Wasendorf Sr was break two categories of right when he is the CEO of the company. He breaks the legal right because he gave fraudulent statements to his accounting department showing fictitious deposits and balances. The false numbers were used to generate monthly reports to regulators showing the company was holding more than $200 million in customer funds than it actually had. According to the law the action that he did was guilty. Other than that he also breaks the moral right, he use his position right and authority to embezzling the investors moneyfor a range of personal and other business interests. Under the right principle there are two types of right. There are positive right and negative right. Under the positive right the CEO Russ Wasendorf Sr must help the investors to gain more profit as more as possible but he did not do it. The CEO also breaks the negative right of the investors. The investors have the right to check the account of the bank without interfere by others but Russ Wasendorf Sr was changing the banks address in the statements to a post office box he controlled and send back false documents purporting to be from the bank. Furthermore, under justice principle the CEO Russ Wasendorf Sr was breaking the principle of equal liberty of the investors. This is because he changing the banks address so that the investors have no the equal right to get the information. The method to avoid such problem in the future Set a fix appointment period for CEO and avoid to renewal. From the case, we know that defender commit in fraud in a company for 20 years and it never found by anyone until he lapse at the last time he commit the fraud. The reason he can hidden his fraud is he was familiar day-to-day operation of the company include the procedure of money transfer, time, date and also the preparation of financial report. With their identity as CEO, he also can access into the company high confidential secret profile and get the information the company had. In additional, we should keep in mind that the most loyal employees can take advantage over company. So by provision the period that a CEO can be appointment and refuse to renewal the contract of CEO can create a better secured for company to prevent fraud made by high management levels staff. Hiring outside Certified Public Accountant firm to audit financial report. Although each corporation has their own professional accountant to manage their financial account but hiring the professional CPA from outside to audit company account can help to prevent fraud and also bring advantages to the company. The following are the advantages of hiring outsider accountant. Internal accountant will more caution when prepared their report because it will be audited by external accountant hiring from outside company which is more professional. Fraud can be prevent because the financial report is monitor, filtered and keep track by the professional CPA firm. They are trained and experienced and that makes them the perfect choice to trust all of companys accounts with. Because of professional, the CPA has skill and ability to identify the problem in an account and thus can help organization to detect fraud in the company. As an outsider, they act as just and doesnt has conflict interest with the company. Strictly requirement to recruit CEO In this case, the CEO is responsibility to all the fraud made by it so the requirement for recruit a CEO should be highly strict and prudent. There are several important term and condition can be made to CEO. Require a CEO to open their personal financial report to B.O.D of the company by annual to make sure their financial is health. Make sure there is no conflict interest between CEO with the company. It is preferable if the CEO doesnt own any company with a clear background. The accuracy schedule of the CEO journey should be recorded. Including where he goes, who he meets and what he does. Provision the CEO to attend the ethic program per annual set by company to upgrade the moral ethic of CEO personality. The ways prevent such problem in the future. 1. The criminal may be ordered to do community service, such as giving speeches about business crime. It will be more helpful which the speakers have the experience before. The criminal can share his experience to other people, at the same time, it also as a type of reminder to him himself for prevent do any business crime in future. People will more believe that other people real experience compare to only study form book. For instance, junk-bond king Michael Milliken was compelled to give speeches about corporate crime after he was convicted of insider trading. By the speech given by Michael Milliken, people will believe and prevent they self from do such miss take in future. 2. Next, judges may disqualify the individual from employment. Judges can prohibit criminal from engaging them in same or similar occupation. It can prevent which person that judges believe he will danger for the social from prohibit them occupation in same of similar job after they relieve from jail. This ways also can prevent his or his members follow or continue doing the same thing and it will become a type of reminder for the criminal and other people doing the same miss take occur in future again. Other people also will afraid doing business crime in future.

Healing Societal Issues Through Transcendentalism - Free Essay Example

In the late eighteenth century, romanticism swept through Europe and eventually the rest of the world, which ultimately played a key factor in influencing the philosophical movement known as transcendentalism that was created in the United States. Transcendentalism brought numerous new ideas and beliefs to the world that were extremely significant in helping men and women of all races stand up for their rights and freedom. All throughout history and even to this day, we see examples of transcendentalist beliefs used to battle the societal issues of the time. Many societies in the past and modern day contain individuals that respond to the issues of the time by harnessing three major transcendentalist virtues such as individualism, idealism, and the divinity of nature which all cast key parts in the individuals role. Individualism in transcendentalism is the belief that oneself is most successful when they are self-reliant and independent from any institution within society such as organized religion, government, and any other administration that would cause that person to not freely think for themselves. Ralph Waldo Emerson, author of Self Reliance,was a major leader of the American transcendentalist movement. Like many others, Emerson believed that if a man did not independently think, then his mind would be poisoned because his thoughts would not be his own values and beliefs. People need to think for themselves instead of being confined by the rules of society set up by conformists. Whoso would be a man must be a nonconformist. He who would after immortal palms must not be hindered by the name of goodness, but must explore if it be goodness. Nothing is at last sacred but the integrity of your own mind (Emerson 59). Emerson uses a biblical reference in his essay Self Reliance so the reader can relate to the story and truly understand what he is trying to convey. The immortal palms are in reference to when Jesus rode into Jerusalem on Palm Sunday. Jesus was a man who was beloved and celebrated, however, he was also despised because his thoughts and ideas were different from the ones everyone else shared. People who want to gather immortal palms or do something that is worthy of rejoicing cannot be restrained by what is good and bad according to society. To succeed you have to play off of your own intuition and follow what you think is right, even if it means going against authority or power. Individualism is an extremely important aspect in the role of the individual in a society that responds to the issues of the time. Without Individualism we lose our unique identities, thoughts, opinions, beliefs, and virtues, therefore it would be impossible for an individual to take the role of addressing the issues in society because there is a lack of personal conscience. Before the romanticism period, there was a movement called the age of reason that took place between 1750 and 1800. This was a period of exploration and pursuit of knowledge however society was extremely strict and dull. At the beginning of the transcendentalism movement, the leaders hoped to stop these old attitudes towards life and make society enjoyable and full of wonder and awe. This was accomplished through idealism. In transcendentalism, idealism is the emphasis on cr eative thinking, raising questions, and innovation. Idealism was especially important in pre-Civil War America because African Americans and women were denied the same rights as white men and a new culture of raising questions allowed people to finally start asking why cant everyone be equal?. Sojourner Truth was an African American abolitionist and a womens rights activist who fully embraced idealism because she created her own ideas which she believed in and wanted to fight for. Truth spoke about her opinions and ideas in her speech Aint I A Woman, which took place on May 29, 1851, at a Womens Rights Convention in Akron, Ohio. If my cup wont hold but a pint, and yours holds a quart, wouldnt you be mean not to let me have my little half-measure full? (Truth 99). During this time period, white men owned everything, therefore, Sojourner Truth wanted to raise questions. If white men have all the control in life and women barely have any opportunity, is it not cruel to constantly deny this group of people rights and freedom? By asking this, Truth appeals to ethos ultimately bringing her closer to the audience and building up her character and self-virtue. Then that little man in black there, he says women cant have as much rights as men, cause Christ wasnt a woman! Where did your Christ come from? Where did your Christ come from? From God and a woman! Man had nothing to do with Him. (Truth 99) Sojourner Truth knows that most of her audience follows Christianity. By bringing up Mary, the mother of God, she appeals to logos by showing people in the audience a woman who can be trusted in a position of power. Raising questions such as Truth did plants the seed of doubt towards societal norms in listeners minds, which creates more questions to be asked and support towards her cause. Idealism consistently allows people to challenge things that they dont think are right and just. An individual needs to be able to ask questions and think creatively to address problems in society. Without Idealism, issues in our world would never be resolved because no one would consider asking if something was right or wrong which is why idealism is an extremely important aspect in an individuals role in responding to issues in society. Transcendentalists did not believe in organized religion because it does not allow individuals to freely think due to the set of rules, ideas, and beliefs put in place by others. However people of transcendentalism thrived for extremely spiritual lives and believed that it was of the utmost importance to connect with nature because it is sacred. The divinity of nature for transcendentalists means that human beings should never interfere or try to control nature, their fate, or the universe and rather leave it be and let divine nature take its course as God or the Divine intended it. All human beings, male and female, were created equally in the eyes of the divine. When people disobey this, acting in an arrogant or egoistic way and turn to corruption or greed, they are trying to control nature and change fundamentals that they have no control over which breaks the relationship between nature and the soul. In Chief Seathls letter to The President of The United States, there are strong representations of corruption and greed in one group, the white men, while the Native Americans have grand amounts of respect for the divinity of nature. The President in Washington sends word that he wishes to buy our land. But how can you buy or sell the sky? The land? The idea is strange to us. If we do not own the freshness of the air and the sparkle of the water, how can you sell them? Every part of this earth is sacred to my people. Every shining pine needle, every humming insect. All are holy in the memory and experience of my people. (Seathl 75) Chief Seathl makes it understood that his people have extreme gratitude for natures beauty and sacredness. His detail when describing each aspect of the land they have come to know shows that he and his people take the divinity of nature very seriously while the Americans depict gluttony. In 1852 the United States was heavily focused on westward expansion ultimately driving Native American tribes out of the land they were living on. The Americans wanted to buy the land from the natives and this baffled many of the tribes because, in their the eyes, the land was not something they could just buy. They believed that we are guests on this earth and it is not our right to be here, it is a privilege and we need to be respectful of nature, which all human beings are apart of. All things are connected. Whatever befalls earth befalls the sons of the earth (Seathl 75). At the time, America is creating all this violence and corrupting its population through greedy and egotistical ways. Chief Seathl understood that his people who carry out the values of divine nature were far outnumbered so he includes this warning that whatever hurts the earth will one day hurt man. According to transcendentalist values, nature is sacred and in order for human beings to live a successful and happy life, one must have a strong connection towards nature which allows that person to understand that everything in life is connected and happens for a reason. When people decide to take different paths in life and break this code, corruption and violence rise which creates issues within society. The divinity of nature is not just a key virtue specific to transcendentalism. The first representation of divine nature takes place in the Holy Bible. In Peters second epistle, he tells the reader that the opposite of divine nature is corruption in the world (2 Peter 1:4). Peter says that if we take part in divine nature then Gods promises, also known as the covenants between God and his people, wi ll be true. These promises are peace among everyone and eternal life. Like Chief Seathl and Peter the Apostle, individuals need to continue the job of spreading the word and living true to the divinity of nature to be able to resolve and respond to issues in the world. As said in the Bible, if all men and women take part in divine nature, peace in the world can thrive which is why this is such an important aspect that supports an individuals role towards responding to issues of the time. There have been individuals in the past and in the present have had great success in upholding the role of responding to issues within society. Many of these individuals portray characteristics that are in line with transcendentalism. By knowing the importance of a persons ability to think independently and challenge social norms, while also understanding how to properly connect with nature and treat the environment around them, an individuals job in addressing and resolving issues within society become more transparent. Embracing the three major transcendentalist virtues which are individualism, idealism and the divinity of nature allow each and every one of us the opportunity to one day become that individual. 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