Maxwell Case Fraud Investigation Summary This report deals with the internal investigation of fraudulent activities committed by Anna Thomas of Maxwell and Company. The investigation determined that Anna had been making personal charges and cash withdrawals on Rusher Automotive’s credit card for two and a half years. Introduction The accounting profession believes there are three conditions necessary for fraudulent behavior, as well as a responsibility to to perform quality services with integrity, objectivity, and professionalism. Accounting firms have the responsibility to hire and monitor competent personnel, so they can fulfill their assigned responsibilities. This report will explain how all three conditions were present in Anna’s actions, how Max and Company failed to uphold quality, and describe Anna’s background.
Nick had started out his career as a strike-force Agent; their basic function was to uncover possible criminal activities. Their duties often consisted of undercover work. The book explains some terms used in the industry along with some statistics, and IRS history. For example, in 1998 Congress prohibited financial status or economic reality techniques to determine the existence of unreported income unless an agent has a reasonable indication that there is a likelihood of unreported income. The targets of Special Agents who work for TIGTA are dishonest Treasury Department employees, as well as government officials and employees.
According to WITN.com news channel Josey embezzled the money from legitimate payee accounts of the corporation’s general accounts and then converted the money to her own use. She would conceal the movement of money by stamping corporate checks with a made up office stamp with one of the five corporation names so that it appeared the money was going to where it needed to. Deputies say that she then used the money to pay off loans, debts, obtain property, pay insurance, and pay for exotic trips and vacations. Josey had been embezzling the money over the seventeen years that she worked there. It was discovered when Gilliken tried to use a debit card Josey had gotten for him.
The following Monday, Anderson received a message from Larsen’s lawyer letting her know any questions directed to Larsen would have to go through him. During the subsequent investigation by the new office manager, it was discovered that most of the alleged misappropriations involved the issuance of fraudulent checks, which were falsely recorded to look legitimate in the records and cash Larsen had stowed
Chrysler is a major automotive company in America. For a company this size to go down would be devastating to the economy and America. Thousands of people are employed by the automobile manufacturer and the thousands of parts houses across the country. This type of downfall would certainly keep a failing economy down for some while. The Government had to step in and do something to prevent many
Both the CEO and members of the HP board failed as moral persons and as moral managers, leading to Fiorina's ouster and the subsequent HP spying scandal. HP went from one of the world's most admired companies to the target of criminal investigations and public criticism. Implications for leadership ethics are drawn from the experience of HP, and limitations of the ethical leadership construct are identified. Keywords: Carly Fiorina; celebrity CEOs; ethical culture; ethical leadership construct; Hewlett-Packard; pre-texting scandal ********** Carleton (Carly) Fiorina was the most powerful businesswoman in the United States at the turn of the millennium (Nocera, 2006; Sellers, 1998). In 1999, she was hired as the CEO of technology giant Hewlett-Packard (HP), becoming the first woman to head a Dow 30 company.
It cost Aaron considerable amount of money to rebuild the factory. He took on huge debts to rebuild the factory. Although the productivity of employees soared high immediately after Aaron rebuilt the factory, the subsequent three warm winters caused the company to go bankrupt, with Aaron struggling to pay the debts. The key question here is if Aaron blinded himself to the realities and practicalities in the business world then and went ahead with the huge decision to rebuild a factory and continue paying salaries to his workforce. Did his decision cause more harm to the communities in the long run?
The irregular accounting practices, including manipulating stock prices, caused Enron to have to file bankruptcy in December of 2001 (Thomas, 2002). The scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s (Hanson, 2002). Enron collapsed for many reasons. .Among the many reasons were the lack of attention shown by members of the Enron board of directors to the books financial entities and the lack of truthfulness by management about the health of the company and its business operations (Hanson, 2002). The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron.
The biggest victim of the Lehman Brothers’ downfall was its investors. In weeks leadings up to the downfall, investors, unaware of the storm brewing within, were still being sold its financial products.4 This caused a loss of significant wealth for many when the company collapsed. A great amount of public trust was also lost. As Lehman Brothers is one the biggest financial institute in the world, its collapses caused ripples in the financial world, eventually contributing to the financial crisis. What Could Have Been Done Differently The ego of the top management doomed the company.
However, the SPH program put a lot of pressure on store managers and sales. In 2010, a large group of the R&R associates sued it for “working off the clock”. This lawsuit might cause reputation damage, and the settlement is up to $200 million. In 2008-2009 before the case, there was an economic recession. The whole luxury goods industry in the U.S. dropped over 14%, and R&R revenues declined 10%.