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. He spent eight years helping the government build its own case against the company, visiting prosecutors in four states and testifying before a grand jury in Boston. He compiled a list of alleged TAP conspirators and then called these former colleagues while the FBI listened in. Moreover, Durand later filed suit making similar allegations against a TAP rival, the former Zeneca Inc. The feds ultimately joined him, filing civil and criminal charges against TAP and prodding it into paying the government $885 million to settle the case–six times as much as the claimed overcharges.
What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? I believe the motivation of what Anderson did was for profit. Anderson had his own business in consulting clients and other businesses, which Enron did hire him for to take care of their
TYCO'S INTERNAL EMBEZZLEMENT Ethics in Management Abstract This paper will provide a situational analysis of the article entitled, Ex-Tyco CFO Committed No Crime. Key points include, legal, ethical, and company ground rules, basis of issue, applicable ethics theories, ethical deficiency, organizational leadership, and plan for revision of ethical standards. Tyco's Internal Embezzlement Mark H. Swartz, former Tyco chief financial officer and L. Dennis Kozlowski former Tyco CEO are prosecuted for grand larceny, securities fraud, and falsifying business records. The two executive officers used Tyco International Ltd assets and financial records for their own benefit. Swartz and Kozlowski bought many properties and art collection on top of giving themselves unjustified compensation packages without the approval of the board of director.
STEEBY VS FIAL Tort Liability Charles Fial and Roger J. Steeby entered into a partnership called Audit Consultants to perform auditing services. Pursuant to the agreement, they shared equally the equity, income, and profits of the partnership. Originally, they performed the auditing services themselves, but as business increased, they engaged independent contractors to do some of the audit work. Fial’s activities generated approximately 80 percent of the partnership’s revenues. Unhappy with their agreement to divide the profits equally, Fial wrote a letter to Steeby 7 years later, dissolving the partnership.
Cover Story: Internal Fraud Terrence McGrane, a chief internal auditor, brand new to a popular magazine publishing company; uncovered a fraud by chance. In an effort to learn about his new company he decided that he was going to study the company’s invoices and interview top management. During his interview with Harold J. Scott, the vice president of administrative service, Terrence asked if some of the coding on the invoices can be explained. Through the analyzing of the invoices Harold Scott noticed that some of the invoices that were endorsed were forgeries and it was his name that was forged (Wells, Case Study: Bank Teller Gets Nabbed for Theft, 2011, p. 104). During the investigation Terrence discovered that all of the forged invoices were coming from the paint division where a 15 year veteran of the company was coordinating.
Linkage of Case to Chapter Material This case focuses on the controversial $165 million in retention bonuses paid to employees of the Financial Products unit of the American International Group (AIG), a behemoth insurance and financial services company. In early 2008, employees in the Financial Products unit were asked to remain with the company through the unit’s shutdown and, essentially, to work themselves out of a job. To entice talented employees to stay and work through the shut-down, a contractual retention bonus plan was instituted. When the bonuses were paid in early 2009, controversy and outrage arose given that AIG was the recipient of a substantial amount of United States government bailout money under its Troubled Assets Relief Program (TARP). Amid this controversy, Edward Liddy, AIG’s CEO, requested the bonus recipients to return half of the bonus amount.
Create a security checklist for the Banana Tree Travel Agency! Equement Security Insptect all computers after employees leave Use locks on all computers Secure all the equiment keys Password Security The office supply each employee a username & password. Store password in secure location. Require each employee to logon to each workstation at the same time and log off at the same time. Record and secure any password settings created by the employees Workstation Security Confuigre each computer with privete IP addresss Install anti-virsue software on each computer Anti-virsues checks 2 times per a week Software up dates 1 time a week Operating Sytem updates 1 time per a week Restrict Guest from using the employees computers 4.
(Kaplan, 2009) The illegal and unethical behavior occurred when (CEO) Kozlowski, and (CFO) Swartz, awarded millions of dollars to themselves and other executives that were not approved by the board of directors. The board was supposed to approve every bonus, or loan forgiveness, as a bonus reward. The loan programs that
Attendance was a specific employment regulation agreed with in the unions contract with the employees. According to this agreement with the union and Sanderson employees, an employee who was absent from their work in excess of their scheduled hours in a month or was late twice in a month, was subject to disciplinary action. Reeves responsibilities as a supervisor was tracking the number of hours worked by each of the employees under his supervision on a daily, monthly and yearly basis. Oswalt as the other supervisor over the Hinge Room, also reviewed all monthly time sheet reports. Reeves and Oswalt both disciplined tardy or absent union employees Reeves and Oswalt revised the records and turned in weekly time sheets that listed all the hours worked by the employees working under their supervision to Russell Caldwell, who would reviewed the records and send them to get processed.
But a federal law enforcement agency called EEOC (Equal Employment Opportunity Commission) has the power to file discrimination suits against employers on behalf of alleged victims and to arbitrate claims of discrimination faced. This questions what importance and significance the employment contract holds where it’s clearly stated that all disputes are to be handled by binding arbitration. This could mean that the employer can face arbitration with the employee and litigation with EEOC that violates the original contract. Also, EEOC has the authority to decide which claim is appropriate and which claim serves public interest and I don’t agree with that 100%. In this official legal analysis paper, I would like to evaluate EEOC vs. Waffle house, which is the back bone of my paper along with my analysis and vision and EEOC’s outlook on importance of contracts with the help of their trial attorney.