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.
The Enron illusion was carried out by the major executives within the company such as CEO Jeffery Skilling and Chairman Kenneth Lay. These major executives were involved in the misappropriation of billions of dollars in Enron funds which they in turn benefitted from. By paying off the Arthur and Anderson auditing firm Enron was able to successfully falsify their financial statements to say whatever they wanted them to. While these executive enjoyed the luxury that came from this scandal 20,000 employees lost their jobs and medical support, and 1.2 million dollars in retirement funds were lost. The movie ends with the saying “Ask Why?” which was once the corporation’s slogan.
It became clear that the Nixon presidency had been involved in serious manipulation and abuses of power for years. Millions of dollars coming from Nixon supporters were used to pay for the cover-up in an attempt to hide the truth from Congress and the American people. The investigation would introduce the American people to such people as John Ehrlichman and Bob Haldeman. Ehrlichman was the President and Chief of the Domestic Council and Haldeman was the Chief of Staff. Both would be fired in a desperate attempt to save the presidency.
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.
Reed Slatkin Fraud Case For my fraud case study, I chose to do it over Reed Slatkin for investment fraud. He was considered to be the perpetrator of the largest Ponzi scheme in the United States since that conducted by Charles Ponzi himself. Slatkin was born in Detroit, MI and was an initial investor and co-founder of EarthLink. Slatkin was also an ordained Scientology minister and long time supporter of the group, as were many of his victims. Reed Slatkin acted as an investment advisor for over 15 yearsin stock trading and money management.
(AP) Former Rite Aid Corp. chief executive Martin L. Grass was sentenced to eight years in prison Thursday for conspiring to falsely inflate the value of the company his father founded and cover up the scheme. Grass, 50, who headed up the nation's third-largest pharmacy chain in the late 1990s before being forced out in October 1999, also was fined $500,000 and given three years' probation for his role in a billion-dollar accounting fraud that sent the company's stock tumbling. Before U.S. District Judge Sylvia H. Rambo handed down the sentence, Grass apologized to Rite Aid, its stockholders and employees. "For the harm caused to them, I am truly sorry," he said. Grass was indicted by a federal grand jury two years ago.
A lengthy investigation and several hearings pressed JPM leaders on their trading practices. One hearing in particular, conducted by the Permanent Subcommittee on Investigations accused the banking giant of misleading investors and regulators about the risks taken during trading. In his testimony, JPM’s chief financial officer, Douglas Braunstein, “said his statements were based on what he knew at the time, conceding that in hindsight the credit portfolio ‘did not act as a hedge, it changed dramatically and we misunderstood the risks’” (www.4-traders.com, 2013). Later in his testimony, Braunstein mentioned that his 2012 pay was cut in half to approximately $5 million, because of the trading debacle. Other bank officials made similar statements in an attempt to dispel public opinion that they, and everyone in the banking industry, were overpaid and over-privileged.
Rite Aid was also ordered to cease-and-desist pursuant to section 21C of the Securities and Exchange Act of 1934 from committing or causing any violation, and from committing or causing any future violation, of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. This particular AAER does not disclose the specific facts that caused the SEC investigation, but it is my understanding that Rite Aid was being investigated due to disagreements with its auditor, KPMG, and its suspicious severance letters granting millions of dollars that were given to employees to keep them quiet over Rite Aid’s fraud. Soon after the SEC investigated Rite Aid, they uncovered a number of violations by Rite Aid. Rite Aid failed to disclose improper vendor deductions or “up charges.” Rite Aid failed to accrue expenses for Stock Appreciation Rights (SARs). Previously recorded expenses were reversed to overstate income.
(Count XIV). 3) The rule of law I found most prevalent in this case is the fictitious payee rule, since the checks signed by Bucci never made it to the intended payee. The bank should be held liable for EES losses because under the Ultramares doctrine the third party is held liable for its negligence. 4) In 1997 Greenawalt allegedly began stealing money from EES by altering checks and altering the company’s financial records to conceal the fraud. Greenawalt altered the checks by erasing the name of the payee after Bucci had signed the check and writing in her own name, or making the check out to “Cash.” 5) I think the court made a fair decision on this case to partially dismiss some
After a trial run, the technology that the firm helped develop became the NASDAQ . At one point, Madoff Securities was the largest buying- and-selling "market maker" at the NASDAQ. Madoff's firm, which is in the process of liquidation, was one of the top market maker businesses on Wall Street (the sixth-largest in 2008),often functioning as a "third-market" provider that bypassed "specialist" firms and directly executed orders over the counter from retail brokers. The firm also had an investment management and advisory division that is now the focus of the fraud investigation. - Securities fraud : Madoff was arrested by the Federal Bureau of Investigation (FBI) on December 11, 2008, on a criminal charge of securities fraud.