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.
However, he had become more and more greedy. Finally, he manipulated the company’s resources to use for his personal purposes, which is the beginning of the end. The case discusses unethical and illegal actions taken by Tyco’s former CEO Dennis Kozlowski, CFO Mark Swartz, and some other members of the board of directors. Those actions have caused much damage to Tyco Corporation and led to the criminal investigation by the court. According to the author’s viewpoint, many scandals have happened because of the following illegal behaviors.
The U.S. banking group has said it is cooperating with authorities in India, where a series of sizable scams have come to light in the past several months, tarnishing the image of the country as a business destination. Most recently, eight senior officials of state-run banks and financial companies were arrested on charges of taking bribes to facilitate loans to companies in late November of 2010 (See International Business Times, January 4, 2011). The Three Elements of the Opportunity Triangle: Commit, Conceal, and Convert The alleged Citibank fraud emerged when Gurgaon police arrested Shivraj Puri, a Citibank relationship manager, for allegedly luring wealthy clients to invest in schemes that promised higher returns but weren't backed by the bank. The arrest followed a complaint by the U.S. bank after it noticed "suspicious transactions" at the branch. Sanjay Gupta, the chief financial officer of Hero Corporate Services Ltd., which is part of Hero Group, was arrested.
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.
PARMALAT REGULATORY DIFFICULTIES For the past several years, the United States has seen a proliferation of accounting scandals culminating in the passage of many laws and regulations with the goal of preventing and punishing such fraudulent activities. The purpose of this paper is to show that such fraudulent accounting practices are not limited to the U.S. and the consequences of such fraudulent accounting practices in shaping international law and policy. In particular, this paper will focus on the accounting fraud that took place inside an international company. Parmalat is an Italian-based international dairy and food product company. During 2002 and 2003, the company found itself involved in fraudulent activities.
Recently, Wal-Mart has been under scrutiny for bribery scandals in its largest foreign subsidiary, Wal-Mart de Mexico. In September of 2005, a senior lawyer for Wal-Mart received an e-mail from a former top executive notifying him that the company’s largest foreign subsidiary, Wal-Mart de Mexico, had planned out a multitude of bribery schemes to win market dominance. The bribes were paid to obtain permits or licenses to expedite the setting up of retail units throughout Mexico. In the exchange of e-mails that went on back-and-forth, the former executive was able to provide names, dates, and bribe amounts to the lawyer. Wal-Mart went forth with the allegations and immediately found a paper trail containing suspicious payments totaling more than $24 million.
Case Study 1: And the Fraud Continues Christina L. Bradley Professor Timothy Brown ACC 571- Forensic Accounting April 21, 2012 Abstract This paper is about Walt Pavlo and his fraud against MCI when he was employed as a billings/collection manager. We are going to discuss in this paper what the internal control weaknesses was that existed at MCI that contributed to the commission of this fraud, we are going to identify and justify the approach one would take if they suspected fraudulent activity within the organization where they work. Also we are going to critique the ethical nature of Pavlo’s actions in this case and apply one theory related to crime causation to this case. And The Fraud Continues Walt Pavlo was hired by MCI in the year 1992; he worked in the carrier’s financial unit and was one of a group of managers responsible for billing and collections. It was not until 1996 that Mr. Pavlo started the fraud against MCI which involved several customers.
Case 1: Bernard Madoff’s Ponzi scheme 1. Introduction and brief of the case Bernard Madoff’s Ponzi scheme that occured in the end of 2008 is one of the largest financial fraud in history. Bernard Madoff operated a major Ponzi scheme through this wealth management company. He pleaded guilty to 11 counts of financial fraud and theft in March 2009 and three month later was sentenced to 150 years in prison. This fraud was thought to have cost clients more than $10 billion.
Hudson v United States FACTS: Certain banks were found to have loaned money in violation of federal banking statutes and regulations, and were civilly punished. They were indicted on criminal charges. The Office of the Comptroller of the Currency concluded “petitioners used their bank positions to arrange a series of loans to third parties, in violation of various federal statutes and regulations”. The OCC took action to assess penalties against the bank officers, resulting in a consent order by which they would pay assessments of thousands of dollars, and agree not” to participate in bank affairs. “A few years later, they were indicted on several criminal charges because of the same lending transactions.” These were dismissed for violating
Ethicality of Accounting Activities Ethicality of Accounting Activities The case involving WorldCom, a telecommunications company, was one of the biggest accounting scandals to happen in the US. The company filed for bankruptcy in 2002 after an internal auditor, Cynthia Cooper, discovered discrepancies in the accounting data. After a complete audit with a team, Cynthia found that the discrepancies were fraudulent and unethical. More than one department in the company played a role in covering up the accounting activities that were not ethical or legal. Accounting Activities in Detail The key accounting activity in the case dealt with incorrect journal entries for capital expenditures.