Due to high competition in the industry, low enter barriers, and bad internal control, this young entrepreneur started to have cash flow problems, and a shortage of working capital. Pressure Leads to Fraud, under financial pressure, Minkow started to commit fraud. He forged credit card applications, staged theft, used bogus financial statements, and used his networking skills to entice wealthy investors. One year after that, Barry was in prison, serving a 25-year sentence for perpetrating a $100 million fraud on the firm’s investors. So bold and audacious was this fraud that it spawned a book, Faking It in America.
Kenneth Lay former CEO was indicted on 11 criminal counts of fraud and making misleading statements. Jeff Skilling was indicted on 35 counts of wire fraud, securities fraud, conspiracy, making false statement on financial reports, and insider trading. Hence both were responsible for collapse of Enron. There are a several reasons that led to Enron’s collapse namely; a corrupt leadership at the top, violation of laws that were not impose by the company’s CEO, and Lack of regulation Enron had one of the best ethics code in the industry. First, not work out with written ethics and compliance codes clearly describe how was the company collapse, moreover corruption from leaders at the top and middle level of organizations is a recipe for disaster.
Bank of America: Too Crooked to Fail The bank has defrauded everyone from investors and insurers to homeowners and the unemployed. So why does the government keep bailing it out? by: Matt Taibbi Illustration by Victor Juhasz At least Bank of America got its name right. The ultimate Too Big to Fail bank really is America, a hypergluttonous ward of the state whose limitless fraud and criminal conspiracies we'll all be paying for until the end of time. Did you hear about the plot to rig global interest rates?
Dishonesty in ‘The Great Gatsby’ The Great Gatsby is a novel written about the backwards lifestyle of celebrities in the 1920’s that no one seems to think about. The fact with dishonesty always leading to a harder road later on is an important standpoint for the novel as a whole. The character I chose to represent the acts of dishonesty and the reasons why they affect the novel is Jay Gatsby. He was dishonest throughout the entire novel, with his first dishonesty before the novel’s time period began, next keeping his occupation a secret, and lastly by being dishonest with himself towards Daisy. Gatsby first began dishonesty to Daisy Buchanan, originally Daisy Carraway, before the novel’s original time period began.
9). Even in an age of embellishments, the story was beyond belief: a multibillion-dollar Ponzi scheme that lasted for decades, stretched around the globe, and cheated some of the richest, wisest, and most respected people in the world. Thousands of ordinary people were caught in Madoff’s web, too, and were completely ruined (Channel, 2009, DVD). How did Madoff do it? That is a question that is both simple to explain and extremely difficult.
In the article, Devin Leonard (2005) describes the fraud of AIG and AIG’s former CEO Greenberg. Joye discloses that AIG has been improperly booking premiums it receives for workers’ compensation insurance and the CEO Greenberg knows it but does not do anything to stop it. Joye reports the fraud in meetings with Greenberg, Tizzo and the president of AIG but receives no attention. Later, Joye resigns and works for other companies. He keeps silent about what he discovers for many years but he keeps his AIG files and shows them in an investigation on AIG’s accounting fraud from Spitzer.
According to the author’s viewpoint, many scandals have happened because of the following illegal behaviors. It can be clearly seen from the case that the most obvious scandal is that Tyco’s money has been used for personal expenses. CEO Kozlowski was accused of using corporate funds to illegally purchase precious artworks, residences, and properties. More importantly, Kozlowski used Tyco’s $1.5 million to pay for his second wife’s birthday week (Stanwick & Stanwick, 2009). Another unethical action that suffers complaining from many critics is that Kozlowski, together with some other members of Tyco’s management, have received unreasonably high compensation levels, which contributed to the fall of Tyco’s stock (Stanwick & Stanwick, 2009).
Madoff Case Bernie Madoff has become known to many people as the man that perpetrated by far the largest scam in the history. His reputation of a successful investor, financial genius, and a chairman of NASDAQ took a turn for the worst when his so called split strike conversion strategy turned out to be nothing but a huge Ponzi scheme affecting thousands of investors from around the globe. How we can understand a white collar crime, that represent a $65 billion on gains and almost $18 billion of looses to investors. Well, the case that I will present is the one that almost freak out Wall Street. The case of Bernard L. Madoff will remain etched in the memory of investors and traders for the unparalleled example of Ponzi scheme that it set and as the most financially devastating crime.
1. What are the ethical issues involved in the Madoff case? Bernard Madoff started off in the 1960s with a legal business selling over the counter stocks that weren’t listed on the NYSE. He basically acted as a wholesaler between institutional investors. In the 1990s, Madoff started doing his illegal activity causing several investors millions of dollars.
And in the name of restoring financial confidence, they have so mistreated Bank of America that bank executives everywhere have concluded that neither Treasury nor the Federal Reserve can be trusted. Mr. Lewis has told investigators for New York Attorney General Andrew Cuomo that in December Mr. Paulson threatened him not to cancel a deal to buy Merrill Lynch. BofA had discovered billions of dollars in undisclosed Merrill losses, and Mr. Lewis was considering invoking his rights under a material adverse condition clause to kill the merger. But Washington decided that America's financial system couldn't withstand a Merrill failure, and that BofA had to risk its own solvency to save it. So then-Treasury Secretary Paulson, who says he was acting at the direction of Federal Reserve Chairman Bernanke, told Mr. Lewis that the feds would fire him and his board if they didn't complete the deal.