Inside Job from a Legal Perspective Essay Example | Topics and Well Written Essays - 750 words

Inside Job from a Legal Perspective - Essay Example According to Inside Job, the issue securities of Goldman Sachs were crowded with fraud and deception.This is because the borrower of the security had borrowed all the money for the mortgage and therefore was under no threat of loss if the deal went wrong. These loans were however highly rated, prompting many people to purchase investments from the firm. Henry Paulson, the CEO who masterminded this scum was rewarded with a high salary. He was later offered government employment as secretary of treasury, a position that enables him to dispose more of his personal risky shares without having to pay taxes. Goldman also managed to earn extra finances by betting against the same securities that it was claiming to be high quality investment. The manager of Hedge fund, John Paulson made a lot of money by betting against the mortgage industry. He however continued to work with other stakeholders to create more mortgage securities so that he could bet against them to increase his income (Insid e Job). Morgan Stanley also made plenty of securities in the mortgage business that was of low quality. These securities were however rated as high investment securities, making many people to purchase them. The investors ended up losing millions of money while Morgan Stanley made much more by betting against the investments. Fraud is a sort of criminal involvement characterized as misuse of position or false representation, or prejudicing somebody's rights for individual gain. Essentially, fraud is a form of double-dealing and deception planned for individual gain or to bring about a misfortune to another party. The general criminal offense of misrepresentation can incorporate duplicity whereby somebody purposely makes false representation, they neglect to uncover important information or they mishandle a position. Fraudsters are continually discovering better approaches to deceive others for their own benefit. They employ different of channels to deceive others.