We have studied several frauds and alleged frauds in this course, including the following: Madoff: Bernard Madoff perpetrated one of the biggest frauds in American history through his company Bernard L. Madoff Investment Securities LLC. Both the SEC and the Department of Justice filed charges against Madoff for securities fraud. Please review Paragraphs 12-24 of the SEC Complaint against Madoff and his company. Madoff eventually pled guilty to criminal charges and received a 150-year prison sentence.

Holmes: In March of 2018, Elizabeth Holmes and Theranos settled an action against them by the SEC for securities fraud. Holmes did not admit to fraud in connection with the settlement. In June of 2018, the Department of Justice in Northern California filed criminal charges against her (as well as former Theranos President Sunny Balwani) for fraud. You've read materials related to the "Fraud Triangle." Respond to the following questions:

Do you think the "Triangle Factors" explain the reasons for Madoff's fraud?

Are there other factors you believe contributed to his fraud?

Do you think the Triangle Factors explain Holmes's alleged fraud?

Are there other factors you believe contributed to her alleged fraud?

In responding, you may rely on class discussions and materials and other publicly available information (the last of which must be cited). Feel free to use other publicly available information if you would like, and please cite any such information.