There were several situations that lead the executives and managers of WorldCom to "cook the books." Acquisition of other companies drove WorldCom to spend beyond their means; managers were told to spend whatever was necessary to increase revenue‚ even if it meant that long-term costs would outweigh the short-term gains. This fiscally unhealthy mentality led to a very bad decision to enter into long-term fixed rate leases for network capacity with extensive punitive termination provisions. Once the
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Corporate Scandal I. Olympus Updated: April 20‚ 2012 Olympus Corporation‚ founded in 1919‚ is a manufacturer of digital cameras and electronic equipment. Based in Tokyo‚ the multibillion-dollar company has operations worldwide. In mid-October 2011‚ Olympus was rocked by scandal when its former chief executive and president‚ Michael C. Woodford‚ who is British‚ was suddenly fired. The company’s chairman‚ Tsuyoshi Kikukawa‚ blamed a culture clash‚ but Mr. Woodford‚ a 30-year Olympus employee‚
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may be as high as 200 billion dollars every year. To sum up‚ ‘forensic accounting’ is a very constrictive tool for detecting white collar crimes in the present eaccounting era. For high level of super success of forensic accounting needs to develop fraud schemes‚ investigation techniques‚ and the law to fulfill the expectations of clients. Keyword: Forensic Accounting‚ White Caller Crime. 1 Introduction ‘Forensic’ means relating to the legal matters i.e. law enforcement‚ court litigation‚ legal
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Bernie Madoff’s $50 Billion Ponzi Scheme Named after con man Charles Ponzi‚ a Ponzi scheme is a fraud of investment‚ which appeals to investors due to the promise of high returns with little to no risk. Investors believe they are receiving profits however they are merely receiving principal of new investors. In order to be successful‚ the old investors must not withdraw large sums of money at a given time‚ and there must constantly be an inflow of money from new investors contributing to the
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Insolvency Fraud A. Introduction Bankruptcy is a leading cause of concern for the government of the United States. According to The Washington Post‚ in 1991‚ bankruptcy cases are increasing by eighteen percent (Walsh). The legal definition of Bankruptcy is the permissible procedure for dealing with debt complications of individuals and businesses (United States Code: Title 11‚TITLE 11—BANKRUPTCY Legal Information Institute). Specifically‚ a case filed under any of the chapters of Title 11 of
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someone that a person would least expect on doing this. They’re many types of white collar crime. There is: Bank Fraud Blackmail Bribery Cellular Phone Fraud Computer Fraud Counterfeiting Credit Card Fraud Currency Schemes Embezzlement Environmental Schemes Extortion Forgery Health Care Fraud The list goes on and also the way for a person to scheme someone is more. You can check it up on one of my sources (http://www.ckfraud.org/whitecollar.html ). In all money is involved in these examples
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pre-Enron frauds that have been uncovered. Phar-Mor Inc established in 1982 Phar-Mor was a small little known discount drugstore. Phar-Mor became well known for offering medications at a 25-40% discount rate compared to your normal pharmacy store prices. Phar-Mor’s first six years of existence seemingly were fraud free and saw the company grow at a decent pace for their field. By 1987 Phar-Mor almost had 100 stores and was expanding even more rapidly at this point. The first hint of fraud came up
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Homework page to answer the following questions. Use complete sentences to answer and type your answers in Red. 1. List and describe scams Frank Abagnale Jr. did until he was caught. How was he able to elude the FBI? Frank Abagnale forged checks and impersonated important people such as a doctor‚ a lawyer‚ and an airline pilot. He was smart enough to scam the FBI by telling them lies and staying ahead of their persecutions. 2. Are there any precautions in the system today that would
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The young man encountered a series of trouble: bad checks‚ complaints from customers‚ urge for payment from suppliers and finally the shortage of working capital. Not surprisingly‚ the bank refused to loan money to his low profit margin company. Minkow would like to try any method to expand his company and he came up with his own creative idea of financing the business including check kiting‚ credit card forgeries‚ committing insurance fraud and stealing grandma’s jewelry. Minkow met the insurance
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always be present in the financial world. They are shocking when they come to light and at the same time‚ consumer starts doubting the system that were supposed to be watching out for these frauds. These financial scandal is another reminder of how incompetent government overseers have been at detecting financial fraud and how ill equipped the industry has been at policing itself. This paper will back up that claim by looking at the Peregrine Financial Scandal that happened just last month of this year
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