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Fall 2010
UGBA 98/198
1 Unit(s)

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About the Course:

An introductory course providing an overview of different cases in securities fraud and market manipulation, including various Ponzi schemes, creative accounting practices, insider trading, and other instances where investors are convinced to part with their money based on false information. 

Part 1: Accounting and Auditing
The first part of this course focuses on the misuse of accounting to embellish earnings and hide liabilities in order to reap financial gains, often through an increase in stock price or the embezzlement of company funds.

Part 2: Information and Collusion
The primary focus of this part of the course is on the control of information in the marketplace. We will look at cases where CEO’s, investment firms, and everyday con-men provide information at their discretion in order to benefit themselves and their friends.

Part 3: Smoke and Mirrors
The last part of this course will look at deals that are just too good to be true. The perpetrators of these crimes fool the public into buying fake assets or participating in impossibly profitable investments, with the ultimate intention of stealing their money.

With each case we will consider the conditions that allowed these scams to operate, the events leading to their ultimate collapse, and how investors could avoid being victims of these crimes.

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Students will be expected to read articles posted on the class website. Articles for the following week will be posted on the website by Friday.

Mandatory class lectures will be held for 1 hour each week. 1 absence is permitted without make-up. Additional absences will be excused if the student submits a 1-page double-spaced brief about an article related to the course. Failure to submit the assignment after an absence will result in a 10-point deduction from the student’s final grade.

Students will write a 3-5 page double-spaced research paper on any topic related to the course. I recommend starting early and exploring an area of personal interest related to investment fraud. This paper will be worth 100 points and due at the end of the course.

The final grade is based on the 100-point paper, less 10-points for each unexcused absence. Final grades of less than 70 points will result in a non-passing grade.

How to Enroll:

This class is 1-unit P/NP and meets on Thursdays from 6-7pm at Haas C325. I have attached the syllabus for more information. Attend class this week and receive your course entry code.