More handpicked essays just for you.
Ethical issues surrounding accounting scandals
Insider trading in capital market
Ethical issues surrounding accounting scandals
Don’t take our word for it - see why 10 million students trust us with their essay needs.
GERARD WARRENS willfully and with full intent and knowledge made untrue statements of material facts by stating that (1) HOOPER would receive registered stock representing an equity interest in STEALTH SOFTWARE, LLC; (2) Warrens would make financial disclosures indicating the financial status of STEALTH SOFTWARE LLC; (3) Warrens could rely on Defendants ' statement that STEALTH SOFTWARE, LLC was solvent; (4) Hooper would receive the corporate records and balance sheets from Warren; (5) Warrens would disclose various contracts and other prospective customer deals that had concluded or falsely stated they were concluded; (6) HOOPER would recceive all of the arrears in wages after he made an investment in STEALTH SOFTWARE, LLC; (7)Warrens would dislose at a later date the Board members, officers, owners, shareholders, and managers of all the non-resident codefendents; (8) Warrens had top security clearance but would not divulge what kind; (9) Warrens had invested milions of dollars in the LLC; (10) Warrens had consummated contracts with a number of potental customers which were not true; and (11) that STEALTH had employees other than
They wouldn’t also allow the re-election of Ulysses Grant because they were totally against him. Since the New York Sun reported the scandal most of all the investors nearly went bankrupt. They found out they gave some of their shares to more than 30 people in the company after they questioned 13 congress men. Also they only reported that they made only a small amount of money when really they made over 40 million dollars in total profits alone. That’s the money Thomas Durant made with his railroad aka money making machine and also more through out time.
Martha Stewart's trading scandal brought significant attention to the role of regulatory bodies such as the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) in ensuring the integrity of financial markets. As such, we will examine the contributions of the SEC and the DOJ in investigating and taking legal actions regarding the case, and how their efforts ultimately led to the resolution of the Martha Stewart trading scandal. The Role of the Securities and Exchange Commission (SEC) Investigation
In this the investors claim that the company executives encourages the sales staff to report fraudulent earning from fake transactions. Evidence of the fraud, the investors claim, would be found in the emails and the corresponding attachments between sales, sales managers, and accounting. The emails sent between these people would fall under what Bills knows is relevant in the action or at least reasonably likely to be requested during
Yates held a high position in WorldCom, whereas Vinson was simply the accountant. As the company controller and Vinson’s boss, Yates had the authority to fire Vinson, re-consider her promotion, and begin to dislike her if Vinson decided not to comply with the task. Additionally, Vinson does not question Sullivan’s authority. Since Sullivan was regarded as one of the top Chief Financial Officers (CFOs), Vinson rationalizes her decision by assuring herself that if Sullivan thought making misleading journal entries was okay, it must be the right way. Besides, Sullivan had the most expertise and knew the best financial plan for the company.
Phar-Mor Inc., Waste Management, and WorldCom Frauds In the fraud case of Phar-Mor Inc., Waste Management, and WorldCom, the auditors not only failed to discover these companies fraudulent financial reporting but some even help in guidance to continue fraud schemes. Andersen Accounting helps Waste Management in their fraudulent activities by issuing unqualified audit reports of the company’s false financial statements, and engaged in a secret agreement to write-off error of data over the periods of up to ten years and to change accounting practices. Andersen Accounting certified WorldCom’s false financial data of capitalized expenses and false account receivables of $11 billion was all in accordance with GAAP rules. Coopers & Lybrand fails
If the SEC had followed up and called the DTC, they would have discovered Madoff’s Ponzi scheme, but they didn’t. Furthermore, the team investigating Madoff failed because they were inexperienced; they had no previous experience dealing with a Ponzi scheme (pg. 154) and were untrained in what to look for when investigating
5- Should have member of the management team know that fraud was happening? Were there any warning signs? It is unknown to what extent Bernard L. Madoff Investment Securities' executive team members were aware of the fraud.
The fact that he lied and worked with one of his family members to provide false information to the board of directors. Jimmy has a fiduciary duty of loyalty to the shareholders. Fiduciary duty of loyalty says that you can’t divert
The SEC simply did not do their job. When they were tipped off eight years prior to the story going public, if they had started even the smallest examination, the fraud would have been revealed. Madoff did not do any trades, in fact, he simply just stole money from clients and became wealthy doing it. It wasn’t that
He appears to have put profits ahead of mine safety and health in violation of Federal mine standards. Mr. Blankenship could go to prison for 31 years. (See NBC News) CEO Stewart Parnell of Peanut Corporation of America was sentenced to 28 years in prison in connection with a 2008 salmonella outbreak that killed nine people and sickened 714 others across the U.S. Bernard Madoff is serving 150 years jail time for engaging in a multi-billion dollar Ponzi scheme that claimed many celebrity victims. Even former Fed chairman Ben Bernanke had some reservations about prosecutions for the 2008 Great Recession. Individuals were responsible for that debacle not abstract firms.
This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government. At the end, Cendant had filings against them concerning their corporate governance
Bernie Madoff created Bernard L. Madoff Investment Securities in 1960 by purchasing penny stocks not listed on the New York Stock Exchange (NYE) (Ferrell, Fraedrich, & Ferrell, 2013). He was a well-respected financier, until his fall from grace. Now he has been convicted of operating a massive Ponzi scheme that went undetected for decades. Prior to the fall of Madoff, his investment firm was a top-rated successful organization.
If he had registered with the SEC prior, would charges have come sooner, that we may never know? However, I do believe in part, he did not register with the SEC because of his first-hand knowledge and knowing it would be easier for him to be caught if he
According to Pearce and Robinson (1997), “strategy is the overall plan for deploying resources to establish a favorable position it comes from the Greek word “Strategos” meaning to lead (agein) an army(stratos) into war. It is a course of action, including the specification of resources required, to achieve a specific objective.” ‘A strategy means making clear-cut choices about how to compete.’ – Jack Welch (Former CEO, General Electric). Volberda et al (2011), writes a strategy is an integrated and coordinated set of commitments and actions designed to develop and exploit core competencies and gain a competitive advantage.
