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COMPARATIVE EXAMINATION on INVESTMENT SCAMS FACTORS with FRAUD TRIANGLE and FRAUD ELEMENTS TRIANGLE ANALYSIS (Case Study of Char

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COMPARATIVE EXAMINATION on INVESTMENT SCAMS FACTORS with FRAUD TRIANGLE and FRAUD ELEMENTS TRIANGLE ANALYSIS (Case Study of Char COMPARATIVE EXAMINATION ON INVESTMENT SCAMS FACTORS WITH FRAUD TRIANGLE AND FRAUD ELEMENTS TRIANGLE ANALYSIS (Case Study of Charles Ponzi Investment Scheme and Bernard Madoff Investment Scheme) A THESIS Presented as a Partial Fulfillment of the Requirements to Obtain the Bachelor Degree in Accounting Department By: Fidelia Salsabila Student Number: 13312049 DEPARTMENT OF ACCOUNTING INTERNATIONAL PROGRAM FACULTY OF ECONOMICS UNIVERSITAS ISLAM INDONESIA YOGYAKARTA 2018 i COMPARATIVE EXAMINATION ON INVESTMENT SCAMS FACTORS WITH FRAUD TRIANGLE AND FRAUD ELEMENTS TRIANGLE ANALYSIS (Case Study of Charles Ponzi Investment Scheme and Bernard Madoff Investment Scheme) A THESIS Presented as a Partial Fulfillment of the Requirements to Obtain the Bachelor Degree in Accounting Department By: Fidelia Salsabila Student Number: 13312049 DEPARTMENT OF ACCOUNTING INTERNATIONAL PROGRAM FACULTY OF ECONOMICS UNIVERSITAS ISLAM INDONESIA YOGYAKARTA 2018 ii COMPARATIVE EXAMINATION ON INVESTMENT SCAMS FACTORS WITH FRAUD TRIANGLE AND FRAUD ELEMENTS TRIANGLE ANALYSIS (Case Study of Charles Ponzi Investment Scheme and Bernard Madoff Investment Scheme) A THESIS Presented as a Partial Fulfillment of the Requirements to Obtain the Bachelor Degree in Accounting Department By: FIDELIA SALSABILA Student Number: 13312049 DEPARTMENT OF ACCOUNTING INTERNATIONAL PROGRAM FACULTY OF ECONOMICS UNIVERSITAS ISLAM INDONESIA YOGYAKARTA 2018 vi ACKNOWLEDGEMENTS Assalamu’alaikum Warahmatullahi Wabarakatuh. All perfect praise to Allah SWT, the Lord of the World. I bear witness that none is worthy of worship but Allah, alone with no partners. And I bear witness that Muhammad SAW is His Messenger, may Allah exalt his mention. Alhamdulillahirabbil’alamin, the thesis which entitled “Comparative Examination on Investment Scams Factors with Fraud Triangle and Fraud Elements Triangle Analysis (Case Study of Charles Ponzi Investment Scheme and Bernard Madoff Investment Scheme)” as a partial requirement to obtain the bachelor degree in Accounting Department, International Program, Faculty of Economics, Universitas Islam Indonesia is finally finished. I would like to thank everyone who has participated in making this thesis a success. Hopefully, this will be the starting point of initiating other studies. Through this occasion, I would like to address my appreciation and regards to: 1. Allah SWT for every blessings, guidance, and mercy so that my good intention can be addressed in order to give benefits to others, inshaallah. 2. Muhammad SAW as the best of mankind, who has inspired me along the way. My heart sends salutations upon you. 3. My beloved mother, Kuni Affifah, who has been giving the utmost support in every du’a. For every sacrifice and hard times she has been going through, vii hopefully Allah SWT will always give His blessings for you. My father, Budi Akhsani, who always be my best teacher in understanding the meaning of life. My brother, Sultan Muhammad Daffa, may Allah SWT always make us wiser and stronger in doing our life. My grandpa, Iskandar Abdurrahman, and my grandma, Suharjuni, for giving a lot of pressure that becoming my motivation to finish this thesis. I will always do my best to make you proud and happy for the rest of your life. 4. Fathul Wahid, S.T., M.Sc., Ph.D. as the Rector and Dwipraptono Agus Harjito, Dr., Drs., M.Si. as the dean of the Faculty of Economics Universitas Islam Indonesia. 5. Hendi Yogi Prabowo SE., M.For.Accy., Ph.D. as my thesis advisor who always give me constructive advices and utmost inspiration to make my study time much more meaningful. I have learnt much from your tenacity and discipline. 6. Alfi Zakiya., S.Kom., S.Pd., who has given supportive lexical advices on this thesis. Thank you. Thank you. Thank you very much! 7. Anas Hidayat, Drs., M.Bus., Ph.D. and Rokhedi Priyo Santoso, S.E., MIDEc. as the Head and Deputy Head of Business and Economics Department IP UII for facilitating and accommodating me in IP UII. Special appreciation for Pak Ahmad and Miss Alfi who always assist me a lot; Mas Kandri, Pak Erwan, Pak Kus, and others for the very warm welcome and friendliness during my time in IP UII. viii 8. All lecturers at the Faculty of Economics UII who had taught me many things and become my role model in balancing knowledge and religious values. 9. All International Program students who had welcomed me to be part of your big family. Good luck for your next stage! 10. All IP Accounting 2013 classmates (Putri A. Noverita, Khresna Wimba R., M. Fuadi Haitamy, Kurniasari Wati, Aulia Fatima, Rachma Intan P., Diana Noviantari, M. Bagas Nuralam, Ahmad Rezha S., Chyntia Regita N., Bhayu Wijaya, Nauval Feizar F. A. M., Fuadhillah Kirana P., Allita Prisantama, Fanny Oktaviani, Muhammad Faruq, Ardi Dian P., Shigeo Prasasti, RR Intan K. P., Nadia Mashuri, Dian Kurnia P.). I am looking forward to see you all in a great success. May Allah’s blessings always be with us all. 11. International Program Marketing & Communication Team, SAP E-Academy, Outbound Management Training Team, for being my real-life class during my time in UII. 12. My beloved friends (Nareswari Cahyaningputri, Aulia Rizqina R., Beta Rizky U., Azaria Bena A., Firza A. Maulina, M. Reza Hendrajaya, Nuraida Rahmawati, Eka Wilastyo, Tommy Anugerah, and Nurrifanni Putra) for the support and friendliness. 13. My fellow qualitative research fighters (Muli W. Utami, Shafira Nurannisa S., Arba Maulina R., M. Yusuf, and others) who always supporting each other. 14. My lovely best friends (Faddurroh I. Azmi, Alif Fathurrahman, Nur Rofiqoh Arini) who always support, enocurage, motivate, and inspire me in the happy, x TABLE OF CONTENTS COVER PAGE ............................................................................................................... i PAGE TITLE ................................................................................................................ ii LEGALIZATION PAGE ............................................................................................. iii APPROVAL PAGE ..................................................................................................... iv DECLARATION OF AUTHENTICITY ...................................................................... v ACKNOWLEDGEMENTS ......................................................................................... vi TABLE OF CONTENTS .............................................................................................. x LIST OF TABLES ..................................................................................................... xiv LIST OF FIGURES..................................................................................................... xv LIST OF APPENDICES ............................................................................................ xvi ABSTRACT .............................................................................................................. xvii ABSTRAK ............................................................................................................... xviii CHAPTER I: INTRODUCTION .............................................................................. 1 1.1 Background of The Study ................................................................................. 1 1.2 Problem Formulation ........................................................................................ 5 1.3 Research Objectives .......................................................................................... 6 1.4 Research Contributions ..................................................................................... 7 1.5 Systematics of Writing ...................................................................................... 7 xi CHAPTER II: REVIEW OF RELATED LITERATURE .................................... 10 2.1 Literature Review ............................................................................................ 10 2.1.1 Nature of Fraud ....................................................................................... 10 2.1.2 Fraud Triangle and Fraud Elements Triangle ......................................... 17 2.1.3 Investment Fraud ..................................................................................... 31 2.1.4 Previous Research ................................................................................... 40 CHAPTER III: RESEARCH METHOD ................................................................ 45 3.1 Introduction ..................................................................................................... 45 3.2 Type of Research ............................................................................................. 45 3.3 Research Process ............................................................................................. 46 3.4 Data Sources and Data Collection Method ..................................................... 48 3.5 Data Analysis Method ..................................................................................... 49 3.6 Testing the Validity Data ................................................................................ 53 CHAPTER IV: DATA ANALYSIS AND DISCUSSIONS ................................... 57 4.1 Chapter Introduction ....................................................................................... 57 4.2 General Explanation of Research Object ........................................................ 57 4.3 Bernard Madoff Case Analysis with Fraud Elements Triangle ...................... 61 4.3.1 Act ..........................................................................................................
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