What is the controversy surrounding Flex Industries? Discuss the chain of events. The controversy surrounding Flex industries is that the company has paid a bribe to government officials for evading the payment of excise duties. Entrepreneur industrialist Ashok Chaturvedi, the owner of Flex group of companies and the chief excise commissioner Someshwar Mishra were arrested by the Central Bureau of Investigation after it recovered $12,500 from Mishra's office and $12,500 from his car in November 2001. In May 2004, the court exonerated both Chaturvedi and Mishra because of lack of evidence.
Final Paper Candice Blair University of Maryland University College PRPA 601 Turnitin score: There are few betrayals worse than mishandling money that someone has entrusted to you. Imagine the damage control needed when institutions whose purpose is to manage others’ money, mishandles the finances of millions of people. In 2012, the financial world was shattered with the implosion of one of the world’s banking giants, JP Morgan Chase & Co. (JPM). Due to a complex trading portfolio that was dubbed the “London whale”, which amounted to over $6 billion in losses, JPM was accused of misleading its investors in order to boost profits, but asserted that they (JPM) were acting on the best information that they had at the time. A lengthy investigation and several hearings pressed JPM leaders on their trading practices.
1. What led to the eventual collapse of Enron under Lay and Skilling? All the fraud activities conducted by Lay and Skilling and bad corporate culture led to the Eventual collapse of Enron. Both were aware of the Enron Code of Ethics but they did not follow it. Kenneth Lay former CEO was indicted on 11 criminal counts of fraud and making misleading statements.
Hiring Ms. Mandeville and making this sizable loan were approved by the board, but it is uncertain whether the board is providing effectively overseeing the financial reporting process and internal controls as it pertains to related-party transactions. After reviewing the accounts receivable aging and accounts receivable confirmations, it was discovered that Apollo Shoes has $21,660,477.61 that is considered past due, or 60 or more days outstanding. This amount includes $14,784,144.03 owed by Mall-Wart. Mall-Wart entered into a voluntary bankruptcy in early November and made Apollo aware of this. Apollo subsequently sent another $5m of orders that Mall-Wart claims they didn’t place over and recorded an additional receivable.
In addition to conceal the true financial status of the company, its founder, also the chairman and C.E.O. siphoned almost €500 million to his own companies and accounts. Furthermore, Grant Thornton, Parmalat’s auditing agency, gave a hand to the company to seal its outrageous fraud. Regarding the analysis of Parmalat case study, this report will point out some outstanding risk management issues, which are agency problem between controlling and minority shareholders, and auditing irregularities. Based on the problems being identified, the paper also suggests some measures to prevent companies from experiencing similar problems, including reducing the domination of major shareholders by forming plausible ownership structure, increasing the independence of auditing authorities, designing suitable development strategy, and quick response to crisis when it arises.
The former chief financial officer, Eric Sieracki, is named as a defendant in the lawsuit. Mozilo agreed to repay $45 million that illegitimately earned and also he agreed to repay $22.5 million in civil penalties. In 2010, the firm had to repay $108 million in federal charges that the firm overcharged customers that were struggling to pay their mortgages as a result of the housing decline and the economic crisis. In the early 1970’s, there were activist groups that stated that the organization was biased in lending minorities money to purchase homes in decent neighborhoods. In the mid 2000s, banks including Countrywide financial were lending consumers money to buy homes that they knew they could not afford to pay their monthly mortgage payments.
One key result of this applies to anyone who tries to meddle with documents. Such persons would be subject to a fine or imprisoned for 20 years. Similarly, this act adds substantial fines and longer prison time for corporate employees who sign-off on the correctness of their financial statements, which knowingly misstated. This act has gone ahead to impose criminal liability on the CXO executives for the failure to file certifications in accordance with the legislative period schedule. What impact does the act have on the corporate accountant, on creditors of a company, on investors in a company, and on customers of a company?
This is something that my boss does as well. The company I work for invoices on the date of shipment therefore I do not see a legal issue with United Thermostat Controls doing the same thing. The Sarbanes Oxley Act pertains to United Thermostat Controls because they are a public company. This act states that management must certify the financial statements of a public company. Being that Frank Campbell is management, he certified that these transactions were accurate.
Several years after merging Houston Natural Gas and InterNorth Jeffrey Skilling was hired developed a staff of executives that, by the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions of dollars in debt from failed deals and projects. Chief Financial Officer Andrew Fastow and other executives not only misled Enron's board of directors and audit committee on high-risk accounting practices, but also pressured Andersen to ignore the issues. Enron's stock increased from the start of the 1990s until year-end 1998 by 311% percent, only modestly higher than the average rate of growth in the Standard & Poor 500 index. However, the stock increased by 56% in 1999 and a further 87% in 2000, compared to a 20% increase and a
Warning bells started ringing because of the huge amount of cash involved and because of a reference to a peculiar arrangement with Adelphia that made the family and the company responsible for each other's debts. Ultimately it was revealed that the father-and-son team of John and Timothy Rigas were thieves and fraudsters of the most audacious kind, routinely made up numbers for presentation to shareholders. While they did so, they treated the company like their own cash machine, making withdrawals only and never paying anything back. Using the company jet for family jaunts and hiring a permanent masseuse at the company's expense were the kind of antics that finally sent the Rigases to prison. The federal-court jury