Corporate crime has become increasingly common over the past couple of decades. It seems that every big corporation today has some type of dark side. With the constant trials against corporate officials it seems that many high profile companies can no longer be trusted. We can no longer look at our banks the same either; JPMorgan Chase in the recent two years can be added to corporate crime list. They have committed crimes against its costumers and the government by rigging their bids for investments for years, improper home insurance rates, and overcharging military veterns. From this they stole millions of dollars to put in their pockets. What makes this case interesting is that Chase is one of the top banks in this country. Millions of Americans trust this bank with their life savings it turns out they trusted their money with criminals. The first crime allegedly took place during the years of 1997 to 2005 and was first covered in July of 2011. The bank, “cheated governments in 31 states by rigging the bidding process for reinvesting the proceeds of dozens of municipal bond transactions (2).” They didn’t do this on their own thought; they had help from about 11 bidding agents. As some background to what the bidding process is, it is when cities with the help from the banks bid for re investment products. The cities take their tax money and buy the bonds from the banks for this investment. What Chase did was they; “won investment business because it got information from bidding agents about what its competitors were bidding. In other cases it deliberately submitted non winning bids to satisfy tax requirements.” (2) The also admitted to entering, “secret agreements with bidding agents (2).” The motivation behind this wa... ... middle of paper ... ...July 2011. Web. 9 Apr. 2012. . 3. Hilzenrath, David S. "J.P. Morgan to Pay $153.6M in Fraud Case." Washington Post. The Washington Post, 22 June 2011. Web. 09 Apr. 2012. . 4. Post, The Huffington. "JPMorgan, Bank of America, Wells Fargo Accused Of Overcharging Military Veterans." The Huffington Post. TheHuffingtonPost.com, 10 May 2011. Web. 09 Apr. 2012. . 5.Story, Louise. "Big Banks Face Inquiry Over Home Insurance." New York times. 12 Jan. 2012. Web. 9 Apr. 2012. .
One year ago, on September 8, 2016 the Consumer Financial Protection Bureau(CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo Bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015. This essay will discuss the Wells Fargo scandal by explaining how the event happened and describing how the organization approached handling a response to the crisis. This will be seen, firstly by describing the how the scandal happened, and what were the causes, secondly by discussing the reaction of the company in front of the situation, how they dealt with the crisis and then
It took for the losing in the case with two Bear Stearns hedge fund managers for the government to realize that there was a problem within their justice system. If they couldn’t take down two people accused of deceiving investors, how did they assume that they would be able to take down numerous high-end executives within Wall Street? So in fall 2009, over a year after the initial hit of the financial crisis, Obama introduced the Financial Fraud Enforcement Task to oversee prosecution for fraud and financial crime a week before the hearing to discuss ’08 financial crisis prosecution. With such a department now put in place, the government believed they could go back and review the “fraud” that took place within Wall Street years before and place a blame somewhere, revealing another flaw of the US government and justice system. The government wasn’t taking the cases as serious as they should have. They weren’t finding ways to filter through Due Diligence underwriters and they weren’t calling forth whistleblowers. They were losing the case before it could even
...: Wall Street Insider - Financial News, Headlines, Commentary and Analysis - Hedge Funds, Private Equity, Banks. Retrieved January 15, 2012, from http://dealbreaker.com/2010/06/wachovia-vp-had-good-reason-to-steal-money-from-bank-that-youll-probably-never-understand/
Pitzer, Matt. "The Case Against Goldman Sachs." Last modified 04/21/2010. Accessed October 5, 2011. http://www.business.missouri.edu/ifmprogram/reports/2010WS/GS.doc
In our society, our security and protection is in the hands of the police. When there is a disturbance in society, we immediately dial 911 to get police officers in the scene of the crime for help. Police officers wear a uniform and a badge that symbolizes protection. Police officers are hired to enforce the laws that were placed, ensure the safety of civilians, and to detain anyone who does not follow or does not obey the laws. Although, people and the media might disagree that police officers abuse their power or racially profile people for no reason, I have not yet come across those situations, nor has my family. In fact, most of my experiences with the criminal justice system has been helpful. Furthermore, once criminals are detained, it
3. Gillespie, Nick. "The Great Medicare Swindle." The Daily Beast [New York] 24 Oct. 2013: 1-3. Web.
Wells Fargo account fraud scandal One of the most recent white-collar crimes involved Wells Fargo, a banking and financial services provider. In 2016, San Francisco-based bank Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts without permission of their customers. Opening about 1.5 million fraudulent deposit accounts and submitting 565,443 credit card applications allowed Wells Fargo employees to boost their sales targets and receive bonuses. Consequently, customers were wrongly charged fees for accounts they did not know existed. In this business crime scenario, Wells Fargo is involved in paying $185 million in fines and refunding $5 million to affected customers.
Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and impacting the U.S. financially.
Why does white collar and corporate crime tend to go undetected, or if detected not prosecuted? White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from tax fraud to health and safety breaches. Corporate crime is extremely difficult to detect for many reasons.
For Chase bank the mission and vision should always be clear to their customers. "At JPMorgan Ch...
As Wells Fargo convicted all the requirements of fraud they are involved to the business crime called fraud, they are liable to their fraud crime. There was a false statement which respectively conducted to the injury to the alleged victim as a result. Wells Fargo has been ordered to pay $185 million in fines, but that's a pittance compared with the $5.6 billion the bank earned in just the second quarter of this year. Meanwhile, the bank's victims weren't just nickel-and-dimed with overdraft and maintenance fees. Many of them took "significant hits" to their credit scores for not staying current on accounts they did not even know about. They will likely have difficulty securing home and car loans at reasonable rates for years to come, simply because their bank decided to defraud
The Associated Press. (2007). Freddie Mac pays $50M to settle fraud charges. Washington: USA TODAY.
The Wells Fargo scandal started in 2016 when it came to light that starting back in 2011 employees created over 1.5 million fraudulent bank
Unattributed, (2009, April 187). Combat Fraud of Almost $1 Trillion, Retrieved March 03, 2014 from Internet site http://ethicaladvocate.blogspot.com/
Mooney, Richard. "Banker of America." The Boston Globe 4 Apr. 1999: L1 "Powerful house of Morgan Changes with the Times." The San Diego Union-Tribune 24 Feb. 1986: 18 Sinclair, Andrew. Corsair: The Life of J. Pierpont Morgan. Toronto: Little, Brown and Company, 1981.