Enron was described as “House Of Cards” as it was built over a pool of gasoline. It all sort of became smoke and mirror. Louis Borget, former Enron's CEO was also exposed to be rerouting company’s money to offshore accounts. Once their schemes were discovered by the auditors, Kenneth Lay encourages them to "keep making us millions". However, the traders were fired once it was revealed that Enron's reserves were gambled away which nearly destroyed the company.
At the time of his plea, prosecutors said Grass admitted to a series of illegal activities, from backdating contracts and severance letters to misleading the company and federal investigators about a $2.6 million real estate deal. They said he also met with employees called to testify before the grand jury and encouraged them to lie. During Grass' time at the head of the Camp Hill-based company founded by his father, Alex Grass, its stock price soared as Rite Aid engaged in an aggressive expansion effort. But the grand jury said the boom years were accomplished by "massive accounting fraud, the deliberate falsification of financial statements, and intentionally false SEC filings." Less than a year after
These scandals cost investors billions of dollars when the share prices of affected companies collapsed, and shook the publics’ faith in the security markets. When examining the SOX act you can see that since 2002 many things have changed in the past eight years. Corporate governance is one of many things that have changed; Public companies must now have a totally separate audit committee composed of entirely independent directors and must contain one financial expert. Security fraud now has much more extreme punishments for those who commit or conspire to commit fraud. Since the introduction of SOX auditors of public companies must keep documentation of an audit for seven years, destruction of any documentation or evidence that someone has committed fraud is now punishable by jail time and fine.
Allergan Inc. is a big company in the pharmaceutical industry and was involved in this unethical behavior making millions of dollar without thinking in the wellbeing of the society. To resolve this case Allergan has to admit the unethical issue and collaborate to advice the society about the issue. Then take out of the market all the promotions about the product. Then apologize to the consumers and paid the price to help solve the issue. Drugs and medicine are very sensitive products that can killed people if there are not control and approved to
Post Civil War industrialized America was full of new inventions and systems of business. Unfortunately many of these corporations that were started had corrupt leaders. Starting with the credit mobilier in the railroad industry to Jay Cooke in the finance industry and Carnegie in the steel industry. Most of these corporations created many jobs for Americans and the immigrants entering the US but they also gave them bad working conditions and low wages so that they could make as much profit as possible. Many historians call these leaders of the corporations the “robber barons”.
Bernie was able to gain peoples trust by building credibility; he did this by holding several respectable positions. Madoff was chair of NASDAQ for several years; he also held a seat on the government advisory board for stock market regulation in addition to serving on several charitable boards and even began his own foundation (Ferrell, Ferrell & Fraedrich, 2011). It was this experience that gave Bernie the ability to develop his fraudulent investment advisory business. Madoff’s reputation as a knowledgable investment professional as well as the allure of an “exclusive” investment opportunity fueled the company’s
Madoff served as a chair of NASDAQ in 1990, 1991, and1993. Also, he held a seat on the government advisory board on stock market regulation and served on many charitable boards, even starting his own foundation. All of these accomplishments added to Madoff’s credibility and helped him develop respectability and trust which made people see him as a highly knowledgeable investment specialist. After having earned his credibility and people’s trust through his legitimate success, Madoff became involved in questionable activities. Madoff started a second business managing money in which he attracted billions of dollars from thousands of people by promising consistent returns of 10 to 12 percent.
This affected George because he has to live knowing that he killed his best friend. Secondly, Georges only hope
And to top it all off both of these empires fail for similar reasons. The Han Empire collapsed for reasons such as: undetermined emperors could no longer control powerful warlords, weak emperors let canals and roads fall into disrepair, because of the weak government people started to turn on each other and lose control. But the most important reason for the empire collapsing was because of the economic inequality. Burdened by heavy taxes and crushing debt many peasants revolted destroying the civilization. While this collapse took very little time to happen, the Roman Empire’s decline took about a century to occur.
The irregular accounting practices, including manipulating stock prices, caused Enron to have to file bankruptcy in December of 2001 (Thomas, 2002). The scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s (Hanson, 2002). Enron collapsed for many reasons. .Among the many reasons were the lack of attention shown by members of the Enron board of directors to the books financial entities and the lack of truthfulness by management about the health of the company and its business operations (Hanson, 2002). The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron.