Running head: CORPORATE SCANDAL 1 Sheri Bardot Ashford University OMM 640 Business Ethics and Social Responsibility Prof. Tricia Devin Corporate Scandal in America: Week 6 March 17‚ 2012 COROPORATE SCANDAL 2 The unethical business practices of Enron‚ Leman Brothers and
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Contents Introduction 2 Early Career 2 The Firm 3 Sales Strategy 4 Investment Strategy 5 The Scandal 7 He was not alone 9 The Markopolos Whistle 11 The collapse 13 Charges and Sentence 13 The Victims 14 2009 Ponzi Schemes 16 The SEC Failure 17 SEC post- Madoff 19 Hedge Fund Transparency 20 Conclusion 21 Bibliography 25 Tables Table 1: List of Madoff Clients (taken from the "The New York Times"‚ last updated June 24‚ 2009) 15 Table 2: 2009 Ponzi Scheme SEC Charges 17 Figures
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This paper will explain the fraudulent accounting practices that led to the collapse of Worldcom. Other objectives of this paper will be to demonstrate how these activities were able to go undetected. Also‚ what motives drove the individuals involved to commit these acts. And finally the ethical accounting issues involved. Worldcom got its start as a small discount long distance provider in Mississippi. Founded by Bernard Ebbers and a number of others the idea for Worldcom was simple‚ buy long
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National TV and lying to the public. Imagine that President then getting caught. This is the Scandal that caused the first ever resignation in United States History‚ Watergate. The Scandal involved approximately 70 people‚ but only 25 were actually found guilty. Many people who were found guilty were some of President Nixon’s top officials. Including G. Gordon Libby‚ John Dean‚ and H. R. Haldeman. The watergate scandal resulted in a loss of trust in the federal government‚ many people being found guilty
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Enron Scandal In 1985‚ Enron was formed by Kenneth Lay after the merging of Houston Natural Gas and InterNorth. In the 1990s‚ Lay helped to initiate the selling of electricity at market prices. Markets made it easier for Enron to sell energy at higher prices‚ which caused the company to get richer. Enron was the largest merchant of natural gas in 1992. In November 1999‚ the creation of EnronOnline enabled Enron to develop‚ negotiate and manage its trading business. By 2001‚ Enron became a
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PRIORITY DEVELOPMENT ASSISSTANCE FUND (PDAF) By: PEREZ‚ Chrysalyka C. I. INTRODUCTION PDAF or Priority Development Assistance Fund is a form of pork barrel which has been a very controversial issue in our country today. These are funds given or allocated to government officials in order to support and be spent on community projects and/or repairs and improvements. G. Luis Igaya of Institute for Popular Democracy defined pork barrel
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The Adelphia Scandal In 1952‚ John Rigas purchased his own cable company. By the late 1990’s‚ he had turned it into the sixth largest cable company in the United States with 5.6 million customers. The business was always run as a family style business which led to fraudulent acts among family members and upper level executives. The family has been accused of stealing $3.1 billion from Adelphia and is now facing criminal charges. Adelphia was forced to file chapter 11 bankruptcy and as of April
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WorldCom Scandal Formerly known as WorldCom‚ now known as MCI‚ this U.S.-based telecommunications company was at one time the second-largest long distance phone company in the U.S. Today‚ it is perhaps best known for a massive accounting scandal that led to the company filing for bankruptcy protection in 2002. In 1998‚ the telecommunications industry began to slow down and WorldCom’s stock was declining. CEO Bernard Ebbers came under increasing pressure from banks to cover margin calls on
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Current issue: Scandals in auditing Enron Scandal 1. Introduction Accounting scandals are political or business scandals which arise with the disclosure of financial misdeeds by trusted executives of corporations or governments. These days‚ not too often‚ these scandals are splashed as headlines across media. Why? Because there are complex groups of stakeholders who might be seriously affected by the scandals. Enron scam was the most remarkable scandal in 20 centuries by their institutionalized
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in the scandal‚ including the then senior Xerox management‚ the Board of Directors and external auditor KPMG LLP. The failure of those parties in discharging their duties induces the further thought of trust and accountability among them and shareholders. Furthermore‚ the external environment in 1990s‚ including economic bubble boom‚ irrational investors‚ fierce industrial competition and ineffective regulations on audit‚ provided a hotbed for the scandal. Lessons learnt from Xerox scandal indicate
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