The SEC filed a lawsuit against Black and Radler in 2004 saying that they had engaged in fraudulent and deceptive schemes to divert cash and assets from Hollinger and its shareholders. They were accused of diverting an
Jeff Skilling served as President of Enron Energy Services for ten years, and then CEO of Enron, was indicted by the United States Securities and Exchange Commission. “In May 2006, Skilling was convicted by a jury of one count of conspiracy, twelve counts of securities fraud, five counts of making false representations to auditors, and one count of insider trading.” Skilling not only lied to auditors; he also lied to the Securities and Exchange Commission during questioning in their investigation of Enron. The Securities and Exchange Commission was calling for Skilling to be required to pay restitution to those defrauded and hurt by his schemes. The Enron fiasco called for changes in not only auditing but also an internal control of financial reporting and accounting disclosures in an effort to improve investors trust. Skilling later appealed to the United States Supreme Court for theft of honest services, change of venue and voir dori.
Since the bank has permitted billions to be laundered, it is now faces penalties of billions of dollars. The senate is also accusing HSBC of overlooking signs and warnings that would have clogged the money laundering from place like Iran and Mexico. The senate report alleges that from 2005, the HSBC violated the Bank Secrecy Act and other anti-money laundering laws on a massive scale. Many of the issues is that the bank maintained high risk account affiliated with suspected Mexican drug cartels such as the Casa de Cambio which is a place in Mexico for money laundering. And large cash transactions connected to Iran and other international countries under the U.S. economic sanctions.
This only leads one to believe how dangerous a man with so much power can be. Rockefeller controlled more than 95% of the worlds oil market. His standard Oil Company was the monopoly of the oil market. He earned the label robber baron from his oil monopolies, by using his intelligence to try a new way of oil business. In doing so, knocking down the rest of the market.
This act was signed by President Bush after the financial scandals revolving around Enron, Worldcom, amongst others. People want to know, why was there not one single arrest of a high ranked executive following the biggest market crash in history. Sarbanes Oxley was supposed to help prevent this kind of disastrous situation. During the crash, executives from Countrywide mortgage amongst other bankers packaged toxic securities and sold them to their customers knowing that they were practically worthless. These subprime mortgage derivatives were the entire center of the meltdown that resulted in millions of jobs being lost, and millions of lives ruined.
Initially, a criminal investigation was the primary focus for one the Navy’s main ship supplier, Glen Defense Marine Asia, a Pacific Fleet. However, investigators turned their inquiry to another contractor who supplied ships located in the waters of Africa, Middle East, and South America. A whistle-blower who worked for Inchcape Shipping Service, which is owned by the government of Dubai, suspected the company of fraudulent activity as a result ignited a civil fraud investigation to be conducted by The Justice Department. According to the article, it was alleged Inchcape, along with subcontractors, overcharged the Navy by millions of dollars (Drew & Ivory, 2013). The owner of Glen Defense was arrested in September 2013, charged with conspiracy to bribe Navy officials with cash, trips, and prostitutes.
Why is the author writing this book at the time that he has? After 9/11 media emphasis illustrating America’s greed began to come light. The emphasis evolved from Americans asking, why did this happen? Many Americans soon discovered that we were struck by terrorism because of our government’s greed. Throughout the past ten years there have been movies, documentaries, and several books published unveiling the ugly truth about America’s greedy and calculating tactics.
These seven men were either directly or indirectly employees of President Nixon’s re-election committee and many persons, including the trial judge, John J. Sirica, suspected a conspiracy involving higher-level government officials. In March 1973, James McCord, one of the convicted burglars wrote a letter to Sirica charging a massive cover up of the burglary. His letter transformed the affair into a political scandal of unprecedented magnitude” (www.infoplease.com). This affair is known as “The Watergate Scandal.” The Watergate Scandal taught America many lessons, but the three most important lessons learned were elected officials abuse their power, the media is an intricate part of politics and elected
12, 2002: A criminal indictment accusing Kozlowski and Swartz of “enterprise corruption for allegedly stealing more than $170 million from Tyco and obtaining $430 million by fraud in the sale of company shares.” Mark Belnick is charged separately with falsifying records to conceal more than $14 million in company loans. Dec. 17, 2002: Board member Frank Walsh pleads guilty in an alleged scheme to hide the $20 million in fees for the CIT Group deal. Oct. 7, 2003: The first trial of Kozlowski and Swartz begins with opening statements in which prosecutors characterize them as “crime bosses who looted Tyco.” Defense lawyers call them “honest executives who deserved and disclosed all corporate payments and perks.” Oct. 28, 2003: The jury is shown a video of a birthday party Kozlowski threw for his wife in Italy. Tyco paid almost half the $2 million cost of the event. Nov. 25, 2003: Prosecutors show the jury a video of the $6,000 shower curtain and other expensive interiors at Kozlowski's Tyco-owned apartment in New York.
There can be a lot of factors as to why companies file for bankruptcy and closure. In the case of Enron, the first set of problems in the company manifested when traders reluctantly gambled with company assets in the oil market. They lost $90 million in a period of five days. Since then company reserves disappeared and auditors saved the company by reporting fake net worth and imprecise trading revenues resulting to accounting scandals in the company. Due to the company’s compound business model and unethical practices, they required that the balance sheet is to be modified accordingly to illustrate satisfactory