As the case of Excello Telecommunications is reviewed it can be seen that the CFO was facing financial difficulties due to increased competition. In 2010 the earnings estimate was not going to be met and this would have affected the bonuses‚ stock options‚ and the share prices of the Excello stocks. After discovering a large sale that was pending until the shipment could be made for the following year the CFO asked the company controller to find a way to capitalize on the sale in the current year
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companies such as Enron‚ Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes‚ as embezzlement‚ fraud‚ or stealing office equipment‚ committed by business or professional people while working. Generally the person accused of a white collar
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Fannie Mae’s Fraud 1. Fannie Mae was established in 1938 as a federal charter under President Franklin Roosevelt as a secondary market to expand the flow of mortgage money under any economic condition because millions of Americans could not become homeowners before Fannie Mae. In 1968 Fannie Mae was rechartered by congress as a shareholder owned company‚ funded solely with private capital raised from investors. The charter is directed to increase the availability and affordability for homeownership
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The Excello Telecommunication has been a very successful business until shortly there were some issues with the competition within the companies industry. The CFO of the Excello Telecommunication is Terry Reed‚ who has realized that the business will be short on the earnings this year. With this going on will cause problems with the financial responsibility toward the stakeholders. Mr. Reed located a transaction within the business that will work for the businesses financial responsibility‚ but with
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814-375-4784 Email: mdc13@psu.edu Case for ICMC2006 International Conference on Management Cases 4-5 December 2006 IMT Ghaziabad‚ India HealthSouth Corporation: Fraud‚ Greed and Corporate Governance During the 1990s‚ Richard M. Scrushy‚ the former CEO of HealthSouth Corporation‚ engineered many acquisitions of rehabilitation clinics‚ outpatient surgical care operators‚ nursing homes and other health care companies. In 2003‚ the Securities and Exchange Commission (SEC) accused the company and Scrushy
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as Kris Krishnan was once the CFO of Digi Corporation based in Plymouth‚ Minnesota. He was a graduate of Bangalore University who further studied at Minnesota State University and finished up at the Wharton School of Finance. His career began back in 1979 at Hansen Company as a CPA‚ and he soon moved though several positions as an International tax manager at Eco Lab and Director at Valspar paint. His last appointment prior to Digi was at Lawco Financial‚ as CFO of a private investment-banking
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obligations that have not been helpful to businesses‚ but has drained the companies of revenue and time (Hunter‚ 2007). Hunter explains that instituting the PCAOB allows the board to inflict massive penalties on higher-ups within a business‚ i.e. CEOs and CFOs‚ through the SOX Act. According to Hunter (2007)‚ “the Board is permitted to make any changes it wishes‚ which places companies in the position of forever trying to hit a moving target”‚ (Punishing the Innocent: The Sarbanes-Oxley Act‚ p. 24‚ para
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of the Marketing department of Regina’s parent company. He was appointed CEO and became the majority stockholder after investing only $750‚000. Sheelen had big plans of increasing Sales and diversifying the product line. He had a tremendous forecast of the Company’s growth which unfortunately fell short due to product quality issues‚ only months after it went public. Rather than tell the shareholders’ of the shortfall‚ CEO chose to show that the company was making money than it really was by illegally
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1. What problems did Enron encountered? Many went sour in the early months of 2001 as Enron’s stock price and debt rating imploded because of loss of investor and creditor trust Methods the company used to disclose (or creatively obscure) it’s complicated financial dealings were erroneous and‚ in the view of some‚ downright deceptive The company’s lack of transparency in reporting its financial affairs‚ followed by financial restatements disclosing billions of dollars of omitted liabilities and
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A 22-year Southwest veteran who became CFO in 1989‚ Gary has worked closely with Southwest’s legendary Cofounder and Chairman Emeritus Herb Kelleher and President Emeritus Colleen Barrett to build the nation’s fifth-largest airline and the undisputed Low-Fare Leader. Mr. Gary began his career at Southwest Airlines as Controller‚ moving up to Chief Financial Officer and Vice President Finance‚ then Executive Vice President and CFO‚ before being promoted to CEO and Vice Chairman in July 2004. Gary assumed
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