This was the case in the article “Fashioning a Fraud” by Bethmara Kessler. IN this article, Bobbie Jean Donnelly was a fraudster who used Travel and Expense reimbursements to defraud her company. She was an assistant for a design division in a retail corporation. She quickly figured out how to manipulate her travel and expense reimbursements to eventually defraud her company of more than $200,000. Had her company had proper controls in place for travel and expense reimbursements, this probably would have occurred to this magnitude.
Summary of Bigger than Enron In 2001, the nation was rocked by the collapse of Enron, a multibillion-dollar corporation that employed thousands of people and had affiliations right up to and including The White House itself. With all of the fraud and mismanagement that took place under the gilded roof of Enron, the question arises as to the involvement of others in the scandal, not the least of who is the firm of Arthur Andersen. In the 1990s, more than 700 U.S. companies were forced to correct misleading financial statements as a result of accounting failures, lapses, or outright fraud. Together with Enron -- the largest corporate bankruptcy in U.S. history -- these failures have cost investors an estimated $200 billion. What went wrong?!
Of these, 7,561 were fraudulent, generated to make Satyam look as if it had more business than it did. The invoices named 11 different Indian companies but were never received by those customers. From 2004 until the fraud came to light, sales were inflated 18 percent a quarter on average, for a total of
Citigroup Inc. had chosen to allow greed to take over their responsibility to provide honest and forthright financial advice. As more and more months passed, by the end of 2002, the aftermaths of multiple accusations played a toll on the company’s financial stability, so much so that, they had no choice but to face their accusations of selling false financial information and choosing to implement unethical behavior to gain financial advantages. Citigroup Inc. was facing allegations, which carried a penalty of billions of dollars, due to the costs of regulatory ad private litigations. Citigroup Inc. had single-handedly managed to ruin people’s lives, ruin their reputation, and damaged the credibility of other Wall-Street financial
Sam, Chris and Caleb are now pretty rich and buying 3 piece suits and luxury apartments. The Laundering is going well and things are finally looking up until Chris gets bad news.Episode 2: Dirty Money: Caleb decides to invest in meth and other drugs to obtain more money even though he's been clean for three years. He employs the best Cooks, Dealers and Administrators possible just to be safe.Episode 3: Heist: Jack takes a turn for the worst as Caleb looks through his job plans again and is pretty sure He, Sam and Chris Can pull it off. Sam is still clueless about what to do with her share of the money.Episode
ACRC: CORPRORATE GOVERNANCE FAILURE AT SATYAM 1. What are the reasons for the inadequate corporate governance at Satyam? The fall of Satyam can be attributed to many causes as mentioned below: * Raju had been manipulating Satyam’s financial books for a period of seven years and the major corporate governance issue was that the Board of Directors and the auditors were unable to catch hold of the issue for so long. * Raju and his family founded a group of companies called Maytas. It was owned by his sons and to ensure billion dollar targets for Maytas, Raju inflated cash and bank balances in Satyam’s financial records.
Many people know of Bernie Madoff as the man that perpetrated by far the largest scam in the history of the United States, if not the world. His reputation of a successful investor, chairman of NASDAQ, and financial genius took a turn for the worst when his so called split-strike conversion strategy turned out to be nothing but a momentous Ponzi scheme affecting thousands of investors from around the globe. A Ponzi scheme is “a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from legitimate profits (Fitzpatrick, 2010).” The Ponzi scheme was named after Carlo (Charles) Ponzi who fled Italy for America at the age of 21. In 1919 Ponzi developed a scheme to get investors
I chose to write about Lou Pai, the mystery man, because he was more intriguing than any of the other executives, not to mention he was the only one who escaped federal prosecution. Like the other executives at Enron, Pai was consumed with numbers (money) but also had an odd interest in strippers. This fascination with strippers later led to his divorce, which caused Pai to leave Enron, cashing in approximately 250 million dollars. The Divorce couldn’t have come at a better time because Enron went bankrupt shortly thereafter (approximately six months later). Pai’s strange fetishes and behaviour portrays him as a very unscrupulous person.
President Roosevelt was there every step of the way after the crash during Hoover’s presidency. The start of the crash began with “Bull Markets”, meaning, stocks were becoming overpriced and not based on the actual value of the company. A stock market crash was bound to happen but at that time people didn’t care. People were buying loans like crazy in order to buy stocks, over 10 billion dollars was loaned to these people. In a lecture by Professor Newman, it was made known of the concept “selling short”, meaning, big businessmen would try to make more money on a market they knew was going down, and with that came a lot of common people losing money.
The company took risky dealings but continued to make billions of dollars every year. The most disturbing part is that the CEO had openly admitted his suspicions of the AIG Financial Products unit. Right before the company collapsed, AIG had accessed over $60 billion in probable subprime mortgage losses. In 2008, AIG’s problems caught up with them. The bailout was a kind of derivative call credit default swaps which are financial products that transfer the risk of the bonds between the parties.