THE TROUBLE WITH BACKGROUND CHECKS; Employee screening has become a big business, but not always an accurate one. This article presented instances of people who claimed that background screening firms ruined their chances at job opportunities. In each case the applicants, Ted Pendergrass, Theon Carter, John Griffith, and Ingrid Morales, all have claims that background screening firms have inaccurate information. Ted Pendergrass applied and was rejected for the store supervisor job at Walgreens in November of 2006. The reason, a background screening firm called ChoicePoint, which is the largest screening firm in the United States for corporate employers, had reported to Walgreens that Mr. Pendergrass had a record of “cash register fraud and theft of merchandise” totaling over $7,000.
Advantages: An increase on the job market because positions have to be created for enforcers of this act. Another advantage of this act is the security and accountability. Disadvantages: the disadvantages of the SOX would be that it is costly and time-consuming. The SOX also has opportunity for error if not done correctly. The way the SOX impacts the event industry is how industry professionals keep up with documentation of deals and agreements.it also affected us financially because of budgets cuts, correlating with the act.
The central compliance issue that they are working to curtail is their many violations of the Servicemembers Civil Relief Act (SCRA). Since 2003, the company has undergone scrutiny about overcharging servicemembers and recently returned servicemembers from active duty, which caused many of the servicemembers to face the possibility of a bank foreclosure. When this issue was brought to the company’s attention, J.P Morgan Chase identified two problems. The first was the fact that four thousand-five hundred servicemembers were charged interest and fees that were way above the regulatory cap. Secondly, J.P Morgan Chase
HISTORY OF WHISTLEBLOWER (DOUGLAS DURAND) Douglas Durand is the paragon of a corporate whistleblower. Shortly after stepping in as vice president of sales at TAP Pharmaceutical Products in early 1995, he began to suspect the company was conspiring with doctors to overcharge the federal government’s Medicare program by tens of millions of dollars. But instead of trying to fix the problem, he spent seven months gathering evidence of supposed fraud. Then he quit in 1996 and filed a secret lawsuit against TAP. One motive which is if he could prove the company was dirty; he would share a nice lump of any money TAP paid back to the feds.
Others believe the long prison sentences for individuals involved in these fiascos are too severe for the crime they have committed. Ethical behavior is vital in the success of businesses. A writing in the (referenceforbusiness.com) defines business ethics as “principles and standards that guide behavior in the world of business)”. Immoral behavior and unethical practices dissolves mutual trust in the business community. Ex-CEO of WorldCom, Bernard Ebbers was convicted by a federal grand jury on nine counts of conspiracy, securities fraud and false regulatory filings in an $11 billion accounting fraud at WorldCom leading to largest bankruptcy in U.S. history.
While the accounting was marked to market, it wasn’t being handle the traditional fashion way with trading prices dictating its value. Instead Enron used its own projections to account in the first year anticipated income from contracts that were a decade or more long. This caused the increase of the stock price without a solid base to justify its true value. This action set up the course for them to lie on every subsequent year to cover up the lies from the prior year. It became such a big snow ball of lies that it took down one of the biggest corporations in American history.
Stock Market Crash of 1929 caused bank failures all over the United States. Throughout the 1930’s over nine thousand banks failed. Beginning in October 1930 and lasting until December 1930, the first of a series of banking panics now accompanied the downward spasms of the business cycle (Rosenberg, Jennifer). Although bank failures had occurred throughout the 1920s, the magnitude of the failures that occurred in the early 1930s was of a different order all together.The absence of any type of deposit insurance resulted in the contagion of the panics being spread to sound financial institutions and not just those on the margin. Bank deposits were uninsured and because of that people lost their savings.
The SOX also calls for additional audits which increase business costs. If a business has increased costs and expenses due to the abidance of the SOX, it will most likely take money from other aspects of the business which can negatively impact the investors. The effectiveness of the SOX is debated by the advantages versus the disadvantages that companies and investors face. De Vay (2006) stated that, “The majority of the survey respondents feel that the benefits of
Since the stock market burst and NextCard no longer had access to the debt and equity markets. The credit card customers proved to be extremely high risks and resulted in large credit losses for the business. Once the large class-action lawsuit was launched and SEC began investigating, Robert Trauger of E&Y the audit engagement partner for NextCard called Oliver Flanagan his top subordinate on the 2000 NextCard audit to request revision to the prior year audit workpapers. Robert and Olive altered the report, however, Mullen retained a diskette with original workpapers and Flanagan obtained the diskette. Olive informed Trauger that it was destroyed but instead it was given to federal authorities.
Madoff defrauded thousands of investors out of billions of dollars, $65 billion to be exact. Madoff claimed to have started the business in the early 1990’s, and those charged legitimate. However, federal investigators believe that the fraud began as early as the 1970’s. If this true, by all means his family knew of the scheme, and had something to do with it. Concerns about Madoff’s business surfaced as early as 1999, when financial analyst Harry Markopolos informed the U.S. Securities and Exchange Commission that he believed it was legally and mathematically impossible to achieve the gains Madoff claimed to deliver.