With two other accomplices they were tried and convicted in January 1973. All seven men were either directly or indirectly employees of President Nixon's Campaign to Re-elect the President, CREEP and many people, including the trial judge, John J. Sirica, suspected a conspiracy involving higher-echelon government officials. In March 1973, James McCord, one of the convicted burglars, wrote a letter to Sirica charging a massive coverup of the burglary. His letter transformed the affair into a political scandal of unprecedented magnitude. Mean while back in the Oval office there were evidence of Nixon’s recorded conversation about the Plumber, war in Laos, and Watergate.
In 2007 Sergei Mavrodi was found guilty in a Russian court of defrauding 10,000 investors out of 110 million rubles ($4.3million). MMM was established in 1989 by Sergei Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders' surnames. Initially, the company imported computers and office equipment. In January 1992, tax police accused MMM of tax evasion, leading to the collapse of MMM-bank, and causing the company to have difficulty obtaining financing to support its operations.
There is Martha Stewart, Ivan Boesky, and Michael Millken who were found guilty for fraudulent activities. Martha Stewart was an American Business magnate, media personality, and magazine publisher. Her ventures focus on homemaking. Martha Stewart was under investigation for selling hundreds of shares of ImClone Systems just prior to the Food and Drug Administration’s refusal to approve the company’s new cancer drug. In June 2003, she was charged with securities fraud, obstruction of justice, conspiracy and making false statements to prosecutors and the FBI (Marks, A, 2004).
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’s acquisition of Merrill Lynch Along with the fire sale of Bear Stearns and the bankruptcy of Lehman Brothers, the rescue of Merrill lynch confirmed the worst fears about the financial crisis. After a weekend of whirlwind deal-making, Merrill Lynch had sold their troubled brokerage firm to the Bank of America Corporation, dodging the financial sinkhole that was swallowing Lehman Brothers. As per some current and former Bofa executives and employees, the merger was really messy. On Saturday, September 13, Ken Lewis (Bofa CEO) and John Thain(Merrill CEO) met to discuss a strategic relationship. Thain proposed a 10% percent minority investment in Merrill, but Lewis wanted complete acquisition.
Benston (2002) also states “Enron’s bankruptcy is of particular interest to accountants, because its longtime auditor, Arthur Andersen, LLP (Andersen), is (or was) one of the five largest CPA firms in the world. It has been charged with gross dereliction of duty and even fraud by the press and members of the US Congress.” When this fraudulent misinformation ultimately came to light, it led to one of the largest corporate bankruptcies of all time. A Warning of Things to Come? When examining data taken from one of Enron’s financial statements, we notice two values that are used to determine what is known as the Ratio of Liabilities to Owner’s Equity. We see that Enron’s total liabilities (listed in millions) totaled $54,033, and that their total owner’s
The receipt of the magazine that his order was legal under Nebraska laws and federal. Laws Was Constructed Found that three months later when he orders the magazines that they were banned of complete sexual depictions of minors. The government puts up his appicalications that was fraud organization, it was legal based. Historical Argument (Jacobson v. United States – (Oral Argument) (Jacobson v. United States – (Opinion Announcement) (Conclusion – 5 votes for Jacobson, 4 votes(s) against) Procedural that had been brought to the attentions of the state courts and he was found guilty. He had beaten the state levels, then in that respect after he filed for an appeal with the supreme judicature of the U.S. Site Issues Involvement of issuing the case was consuming over the time he had bought off the cartridge clips.
Company Demise In September 2008, customers started withdrawing deposits from the bank. These actions took place after Lehman Brothers had filed for bankruptcy protection. The banking system in the country was in a state of flux causing many Americans to get leery of the system. In a matter of 10 days, customers had withdrawn a total of $16.7 billion in deposits according to the Office of Thrift Supervision (Sidel, Enrich, & Fitzpatrick, 2008). The Office of Thrift Supervision and Federal Deposit Insurance Corporation seized the operations of the bank and sold it to its only bidder, J. P. Morgan.
Accounting Fraud at WorldCom WorldCom Group, a telecommunications company, caused one of the largest fraud and bankruptcy scandals in American and global corporate history. In total, more than $11 billion worth of fraudulent accounting entries and misstatements were detected. On July 21, 2002, the company filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Bernie Ebbers, Former CEO, was sentenced to 25 years in prison on July 13, 2005. Major Factors Contributed to Fraud The following were several major factors that contributed to the fraud at WorldCom: Company Culture According to the facts given in the case, Bernard Ebbers and Scott Sullivan, the CEO and CFO of the company at that time, had created a company culture, in which leaders and managers were not to be questioned.
1204, 163 L.Ed.2d 1038 Rule – illegally high interest rate, but Buckeye appealed that this should be settled by an arbitrator as listed in the contract Analysis – they included the arbitration in the contract, so that is how it should be settled Conclusion – Finally the supreme court agreed that it should be arbitrated because Cardegna was not appealing the arbitration part of the contract. Case 2.3 Issues – Plaintiff – NCR Corp. Defendant – Korala Associates, Ltd. United States Court of Appeals, Sixth Circuit, 2008. 512 F.3d 807. Rule – unauthorized copying, but KAL moved to compel arvitration under the terms of a 1998 agreement.