Lay, Skilling guilty on nearly all accounts In the msnbc.com article “Lay, Skilling guilty on nearly all accounts”, the trial and verdict of Kenneth Lay and Jeffrey Skilling are portrayed. Approximately five years after the collapse of Enron, the verdict was reached in a Houston courtroom. Lay and Skilling were guilty on many charges such as conspiracy, insider trading, and falsifying financial reports. The article provides a detailed account of their reactions to the verdict. They both took it differently, one with shock, and the other knowing the system would win.
When Waksal found out that the FDA was going to reject ImClone’s application for approval of its cancer drug. It is believed that he told Martha about the rejection which they knew would eventually result in the company’s significant stock price drop. Martha sold about 4000 shares that she had and avoided loosing approximately $45,000. Martha and Waksal had a mutual broker, Peter Bacanovic from Merrill Lynch .Waksal tried to call Bacanovic but he did not reach him. He then called Bacanovic’s assistant Doug Faneuil and told him to sell the stock.
Raju's Ramaling the Former chairman of the company, was sentenced to seven years of imprisonment. The event which also call Enron of India, belongs by the time of 2009, Raju wrote the letter to securities and Exchange Council of India (SEBI) and shareholders of the company, having recognized that it operated profit of the company, and deceive investors. Nearly $1 billion, or 94% of the cash-book was fictitious. In the direct response to recognition investors lost just as RS of 14,000 crores ($2.2 billion) as actions in Satyam collapsed. Raju explained the reasons in the letter to make inflation as follows:" As patrons held small percent of the capital, caring that unsatisfactory work will lead to absorption, thus exposing an interval "."
Several hours later the police officers came out of the room with a written and signed confession, which contained a paragraph that the confession was made voluntarily with full knowledge of legal rights. One officer testified this paragraph was read to the defendant but only after the defendant had confessed orally to the crimes he was being interrogated for. The confession was admitted into court as evidence even though the defense objected. Miranda was found guilty and sentenced to 20 to 30 years in prison. Prior Proceedings: Mr. Miranda was found guilty in the Superior Court and sentenced to 20-30 years for each crime and sent to prison.
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.
Linex contracted with the accounting firm, Simpson, Lafferty, and Co., to audit its financial statements. In 1993, Linex went public. In 1995, Linex was named as a defendant in a patent infringement suit by a competitor. The disclosure of the litigation uncertainty created an environment of risk whereas the owners felt that the litigation could hamper the ability to finance operations for expansion. The amount of the lawsuit was $5 million.
In January 1982, he was convicted of a misdemeanor theft offense and was sentenced to 6 days in jail with 12 months’ probation. Andrade was arrested again in November 1982 for multiple counts of first-degree residential burglary. He pleaded guilty to at least three of those counts, and in April of the following year he was sentenced to 120 months in prison. In 1988, Andrade was convicted in federal court of “transportation of marijuana,” App. 24, and was sentenced to eight years in federal prison.
Jordan retired in 1993 but came back to the league in 1995, no contract was made between Knafel and Jordan after his first retirement. It was not until his second announcement that came in 1998 that Knafel contacted him. She reminded him about their agreement to pay her the 5 million dollars. After Jordan retired he failed to pay Knafel alleging that she was trying to extort 5 million dollars from him. Procedure Jordan filed for a declaratory judgement alleging that Knafel was attemting to extort 5 million dollars from him and even if there was an agreement made it was undenforcable because of fraud and mutual mistake.
As future accountants our job is not to turn a blind eye to actions like this but Cooper gives us the courage to stand up two large companies. WorldCom reported $3.8 billion accounting fraud on its own; this is a direct correlation to Cooper's investigation. The company had to file for bankruptcy protection wiping out if shareholders. Without her taking a stand and doing the necessary investigating WorldCom investors stockholders and employees would have been worst off. This is why she was named Time magazines “Persons of the Year” in
Ethical Organizational Culture Leaders and employees adhering to a code of ethics create an ethical organizational culture. The leaders of a business may create an ethical culture by exhibiting the type of behavior they'd like to see in employees. The organization can reinforce ethical behavior by rewarding employees who exhibit the values and integrity that coincides with the company code of ethics and disciplining those who make the wrong choices.