Kenneth Lay, the former chairman of Enron was prosecuted on 11 criminal counts of making misleading statements and fraud. Jeff Skilling, former Chief Executive Officer (CEO) of Enron was charged on 35 counts that included conspiracy wire fraud, insider trading, securities fraud, and making false statements on financial reports. Andrew Fastow, former Enron’s Chief Financial Officer (CFO), faced 98 counts of money laundering, fraud, and conspiracy in connection with the improper partnerships he ran. This included a Nigerian power plant project that was aided by Merrill Lynch, an investment banking firm. However, Fastow was pled guilty of conspiracy to commit wire fraud and the other charge was of conspiracy to commit wire and
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
| Josey Embezzlement Case | | | Jennifer Allgeier | 9/11/2011 | | Jeanette Elizabeth Josey is involved in a million dollar embezzlement case. She is accused of embezzling the money from her employer James Gillikin. James Gillikin is the owner of Gillikin Marine Railways, Inc., Morgan Creek Seafood, James T Gillikin Inc, Traveler Captain Jimmy Inc and Captain James II Inc. Josey worked as the office manager for the group for seventeen years. Detectives in Carteret County said that this is the largest embezzlement case they have encountered. According to WITN.com news channel Josey embezzled the money from legitimate payee accounts of the corporation’s general accounts and then converted the money to her own use.
Numerous Enron executives were charged with criminal acts, including fraud, money laundering and insider trading. Ben Glisan, Enron’s former treasurer was charged with two dozen counts of money laundering, fraud and conspiracy. Andrew Fastow, Jeff Skilling and Ken Lay were among the most notable top-level executives implicated of Enron’s collapse. Fastow, former Enron chief financial officer (CFO), faced 98 counts of money laundering, fraud and conspiracy in connection with the improper partnerships he ran, which included a Brazilian power plant project that was aided by Merrill Lynch, an investment banking firm. Skilling was indicated on 35 counts of wire fraud, securities fraud, conspiracy, making false statements on financial reports and insider trading.
Accounting – Fraud case Satyam Systems, a global IT company based in India, has just been added to a notorious list of companies involved in fraudulent financial activities, one that includes such names as Enron, WorldCom etc. The Satyam Computer Services scandal was publicly announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified. The preliminary investigations by Registrar of Companies and confession by Mr. Raju revealed the balance sheet of Satyam for the year 2008 contained `cash and bank balances’ of Rs 5040 crore (US $ 1.12 billion) as against the Rs 5361 crore (US$ 1.12 billion) reflected in the books, an accrued interest of Rs 376 crore (US$ 83.85 million) which was described by Raju as `non existent’ , an understated liability of Rs. 1,230 crore (US$ 274.29 million) on account of funds was arranged by himself and an overstated debtors' position of Rs. 490 crore (US$ 109.27 million) as against Rs.
21819 Securities and Action No. CV 11-0092-PHX-DGC, where charges were formally brought forth against the senior management of the corporation. Prior to the indictment, the SEC formally charged NutraCea, two accounting personnel, and three executives for the unlawful engaging of fraudulent accounting in order to inflate the entities sales revenue. The corporations overstatement of sales revenue for both the 2nd and 3rd quarters of the 2007 fiscal year was done as a result of the corporation engaging in unethical activities of revenue recognition and by recording falsified sales. Those that were employed by NutraCea and were found guilty of engaging in improper activities and were charged by the SEC were former CEO Bradley David Edson, Secretary Todd C. Crow, Senior VP Margie Adelman, Director of Financial Services Scott Wilkinson and Controller Joanne D. Kline.
Attorney Paul J. Fishman announced. David Findel, 45, of Monmouth County, N.J., was sentenced by U.S. District Judge Peter G. Sheridan in Trenton federal court. He had previously pleaded guilty to an information charging him with wire fraud. According to the information to which Findel pleaded guilty and statements made in Trenton federal court: Findel is the former CEO of Worldwide Financial Resources (“Worldwide”), which was in the business of originating residential home loans. Worldwide worked with borrowers to prepare mortgage applications and qualify the borrowers for home mortgages.
However, sometimes the right decision in one person’s mind is far from the best decision to make. This is the same situation that Flex Packaging Limited found themselves in 2001. November 8, 2001 Indian woke up to the news of an arrest of a well-known entrepreneur, Ashok Chaturvedi, he was the owner of Flex Packaging Limited along with the arrest of Someshwat Mishra, the central chief excise commissioner (Mishra, 2007). The Central Bureau of Investigation (CBI) recovered $25,000 from the commissioners’ car and office that was being held for Chaturvedi and he was accused of evading to pay excise duties and bribing the central chief commissioner (Mishra, 2007). “CBI alleged that Chaturvedi acted as a middleman to the Pan Masala (chewable tobacco) industry and the central chief excise commissioner” (Mishra, 2007).
Then the two reports of the Washington Post report that John N. Mitchell, while he was the Attorney General, controlled the fund for widespread intelligence gathering operations against the Democratic Party known as Operation Gemstone. Then again, with information from “Deep Throat” Bob Woodward and Carl Bernstein publish a story in the Washington Post that tells that the “Canuck Letter” was a White House operation used to sabotage the campaign of Edmund Muskie. Three days after the story about the “Canuck Letter” Bob Woodward and Carl Bernstein of the Washington Post publish another story about how Donald Segretti was being paid $20,000 a year to run the white House operation to sabotage the Democratic Party
Lehman Brothers and its collapse was at the center of a political debate during the Financial Crisis which was based on theories of conspiracy, lessons being taught, and public pressure that was tied to political motives on the part of the Fed. There is no doubt that the downfall of investment bank Lehman Brothers was a major contributing factor to the Financial Crisis. There is however doubt regarding exactly why this financial institution was allowed to collapse and what specifically the ramifications were for the financial system as a whole. In the middle of March, 2008, the Federal government working with J. P. Morgan Chase bailed out Bear Sterns, however only several months later in September of the same year, Lehman Brothers was left to file for bankruptcy after the Federal government declined to rescue them. This inconsistency on the part of the government and the Federal Reserve contributed to the uncertainty which the Financial Crisis fostered.