Wells Fargo In September of 2016 news broke out about the Wells Fargo scandal. Wells Fargo employees secretly opened millions of illegal fake credit cards and bank accounts for unknowing customers. According to How The Wells Fargo Phony Account Scandal Sunk John Stump, “Wells employees created more than 1.5 million unauthorized deposit accounts and issued more than 500,000 unauthorized credit card applications. These accounts racked up $2.6 million in fees for the bank.”
The Corinthian Colleges Debacle: Holding For Profit Colleges Accountable The Corinthian Colleges Debacle unveiled many areas of non-compliance, not only by the for profit private postsecondary education institutions, but also by the control agencies at the state and federal level. The closure of the Corinthian Colleges revealed the inefficiency of the states to provide oversight and enforcement to mandate compliance based on their authority as outlined in existing state laws. The Corinthian Colleges is just one of many for profit private postsecondary education institutions that have faced or will be facing closures. We’ll provide background on what happened that lead to the closures, the impact this has had on student loans, and what factors have
Also, they used unethical business practices to rise to the top. These unethical practices include over-billing customers and exploiting tax loopholes. By
“Was the frivolity of the Jazz Age… masking the stock-market greed? Were the truly positive aspects of the economy… destined to be pushed into the background?” ("The 1920s: Business and the Economy: Overview." American Decades- STA database source) When people think of the 1920s, they often think of “flapper girls” and the famed Harlem neighborhood in New York City. However, this era was far more complicated than modern-day media and movies like to paint it as.
economy and investor confidence” (FBI,2016). In short, Corporate fraud are crimes that a corporation does. This usually results in large sums of money being repaid back investors or people who had brought the case against them and will result in millions of dollars in settlements. Examples are corporations that are involved in “Deceptive financial practices, Cheating depositors, Overcharging customers, Failure to report safety defects, Ocean dumping and more” Phi Manttera, 2015).
The Wrong Doings and its Effects upon the Government The Government is not at all how it is thought out to be. The federal government or also known as “The Brotherhood” was established to protect those who are their citizen, but truly what are their morals of protection. How can one be an authoritative figure when their authority is overbearingly cruel and unusual punishment.
Political corruption is one political issue is happening with many countries all around the world and the United States. This issue makes the government has a lack of transparency. The political system has been weakening. People in society do not have the freedom to check the government and cannot protect their community. Political corruption makes politics in those nation has less stability.
The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.
Tax Fraud When analyzing the history of the United States, many countries modeled their nations based on the U.S structure of government. However, when concerning power inequality rates and violence tend to damage the U.S economy. The contrast between the rich and the poor is more prevalent as opposed to earlier in American history. Thus, the key components to be a successful state include: war making, state making, protection and extraction.
Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.
In 2008 the country experienced a financial crash not seen since the Great Depression of the 1930”s. The media made the obvious victims the investment banking industry, mortgage companies, large commercial banks, and insurance companies to name a few (Havemann, 2015). This wealthy, powerful, and privileged group broke the law with no consequence. Often times their callous business techniques were rewarded or viewed with respect. Their behaviors are what many believe caused the financial crash, yet they suffered no consequences.
Although America is noticed as one of the greatest countries ever, that view is slowly starting to diminish due to corruption within our political system. Our government has lost the conservative, Biblical values on which it was founded upon and have turned to a liberal ideology. Consequently, our political and governmental system has drastically changed altered from the founding of our country. We see that throughout history, many great nations and empires have fallen due to political corruption within their nation. The founders warned that government corruption would ultimately destroy a nation.
Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.
Kenneth Lay, Mr. Jeffrey Skilling and the company CFO, Mr. Andrew Fastow .The management level of Enron Corporation had misconduct the code of ethics and fail to performing the duties of a corporation which is telling the truth of the situation of a corporation .Instead , they tried try to hide the truth of their financial status and create a false prosperity situation and make the public believe on them in order to support their shares prices . The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ?
The false accounting records were unethical because it means management was enriching themselves. They were getting earnings based on the false availability of funds. They also did this to keep their jobs. When a company is not performing financially well the top positions are the ones usually at risk of being retrenched, as a result of implying the company was financially stable they were protecting their jobs. False accounting also results in duping investors that trust the financial records of the company.
