As what it came to be as one of the notorious case of fraud in the mid-1980s; the electronic store well known as (Crazy Eddie), its owner Eddie Antar and CFO Sam Antar committed every possible act fraud there is. Just to mention two of which they perpetrated; tax evasion and securities fraud. Basically, the tax evasion was committed for many years, it was not until the company became public in 1984 that their wrong doing near its end. Once Crazy Eddie went public, a new set of rules took place, such as compliance with the Securities Exchange Commission and the scrutiny of its investors. Soon, they both realized that their long committed fraud was nearing its end, when an external audit found the real numbers on the company’s inventory, revenues,
and earnings. Consequently, the end result of their wrongdoing is that both Antar’s did not received much of a long sentence, which in my opinion, was mere slapped-on-the-wrist due to the scope of the fraud of over $90 million dollars and the losses that it caused to its investors.
In recent years, it seems as if there is a new financial fraud being reported any given day. One could even say that fraud has become almost a much a surety as taxes. Given the opportunities and pressures, many will businesses will fall victim to human natures and suffer losses through fraudulent activities. This case study will follow one such fraud, following the crimes of Terry Scott Welch in his pursuit for happiness by indulging his passion of landscaping.
By deliberately falsification of their financial statements, by Martin Grass, Brown and Bergonzi. Among other things like:
Le-Nature was a Latrobe Pennsylvania based beverage maker owned by Gregory Podlucky, who is now serving a 20 year prison sentence in New Jersey’s Ft. Dix Federal Corrections Institute. Gregory Podlucky was the admitted ring leader, but in all 5 people plead guilty and another 3 took their chances at trial, where they were all found guilty as well. Le-Nature went into bankruptcy in 2006, and 3 years later they were indicted by the federal government being accused of scamming investors and banks out of more than 800 million dollars. The accounting fraud was an elaborate Ponzi scheme and financial statement fraud. Company officials created false documents, invoices, customer checks, and statements to record activity that never occurred.
Phar-Mor Inc. was able to cover losses with the help of what they consider "bucket account". They moved all fraudulent activities through this account, because they knew that the auditors will not look at any accounts that have a zero balance.
The Le-Nature fraud was similar to the Madoff Ponzie scheme, where Gregory Podlucky took money from new participants and investors to pay off longer-standing investors. A combination of various forms of frauds committed from January 2000 to October 2006, including but not limited to, accounting and money laundering, were the primary causes of the company’s ultimate demise. However, unlike Madoff, the Le-Nature collapse was an internal failure that was not related to external economic conditions. The lack of transparency in financial and accounting records to stakeholders was the reason for the investors to force Le-Nature into an involuntarily bankruptcy in 2006. This step led to the discovery of the fraud committed and the company’...
host, He had other roles such as a radio personality and author number of books he
The major groups that were directly affected are investors, employees, and suppliers. Here we should make the distinction between different types of investors. There are two major types of investors: insiders and outside investors. Insiders are the investors who know the information that is not known publicly and may benefit them in some way. Outside investors are the investors who only know publicly known information. In our case, outside investors was the group that lost the most. On the other hand, insiders, notably Mickey Monus and David Shapiro, were the one that gains millions on IPO. The group who suffered was employees of Phar-Mor. After the scandal was revealed, most of the stores were closed to cover up losses. As a result, thousands of employees got fired. Another party that was damaged by the scandal was Coopers&Lybrant, the firm that did the audit for Phar-Mor, lost its reputation as a firm who does an audit with integrity. The secondary effect of the scandal was the overall mistrust among investors. They thought that if a giant retailer can forge its accounting books, why smaller companies wouldn’t do the same. As a result, investors became reluctant in investing into businesses that caused harm to the economy as a whole. The last but not least group that was affected by the scandal is Phar-Mor’s suppliers. Mickey Monus was fiercely fighting with them to make the chipset deals to cover up his losses, sometimes using inappropriate pressure and causing suppliers making unprofitable deals. In additions, Monus forced them to pay fees and sponsor his basketball League using buyer power of his company. In addition, a lot of bills for supplies were unpaid for months by Phar-Mor. Some suppliers said that they hated doing business with Phar-Mor, but had no choice since it had an access to vast amount of customers.
The Pardoner is the best representation of an allegorical character in “The Prologue” of Geoffrey Chaucer’s The Canterbury Tales. The Pardoner is the perfect personification of fraudulence. He shows this in three basic ways: his appearance, speech, and actions. If one just glances through the reading of the Pardoner than one will think that he is a good religious man, but if one look further into it than he will find the small double meanings that he is the exact opposite. Chaucer likes to use an allegorical style to add some comedy and sophistication to his writings.
Received an A- on this paper, United States History, DePaul University, put almost twenty hours into, most I write in four-five hours, very proud of this piece.
In July 1996, Alert J.Dunlap (also known as Chainsaw Al)was hired as CEO and Chairman by Sunbeams' board of directors to help the company from a period of lagging sales and profits and make it an attractive acquisition target.
So first , he had to conceal financial problems. He created ,,cookie jar ‘’ reserves and they were used to make the company look as if it was experiencing a rapid turnaround. Initially, they increased the losses of Sunbeam in 1996, so that it can later be reversed to inflate profit in 1997. Dunlap made the company recognize revenues for sales that did not meet applicable rules of accounting. As a result of this, at least 60 million dollars of sunbeams record-setting 190 million dollars reported earnings in 1997 was deemed to be due to fraudulent acts. He also caused Sunbeam to engage in the acceleration of sales revenue from a later period and deleted certain corporate records to conceal pending returns of merchandise. Another thing that sunbeam did was they recorded some sales that were not real, through a variety of methods, and recorded other sales that came from ''channel stuffing,'' putting inventory onto the books of distributors and retailers. In one case, electric blankets that had been packaged for a certain retailer were sent to a distributor who agreed, in return for a guaranteed profit, to hold the blankets until the retailer was ready to accept them. Other sales were made by offering deep discounts to persuade customers to buy merchandise that they would not need for many months. According to the rules of accounting the company should have disclosed those discounts and the sales should have been recorded in later
Dewey & LeBoeuf LLP bankrupted because the fallout of the global financial crisis of 2007 and 2008 and fraud. A financial department staffer had committed fraud because two other staff members gave her directions to do the changes to the financial statements. Dewey went bankrupt in 2012 and the truth came out. They hurt a lot of people with the Register Disbursement Schemes.
This item was referred by VFA (Valic Financial Advisors) that Michael Bocskey (The Client) has alleged an unknown person has committed fraud against his account by changing the banking instructions and requesting an Electronic Funds Transfer (EFT) for $6,000.00 to be sent to Sycamore Bank.
The fraud was involved by five seniors top officers of Waste Management Inc. and lasted for five years from 1992 to 1997. Those defendants, who had complete control of Waste Management Inc. were Waste Management’s founder and chief executive officer Dean L. Buntrock, president Philip B. Rooney, vice president James E. Koenig, chief accounting officer Thomas C. Hau, senior vice president Herbert Getz and vice president of finance Bruce D. Tobecksen (U.S. Securities and Exchange Commision, 2002). Along with the cozy relationship and support from their auditing partner, Author Anderson, the fraud was renowned as biggest fraudulent practice in that time. They together had misstated pretax earnings more than $1.7 billion. The reason they began to commit their fraud was because the company’s profits didn’t meet their expectation, so they wrongly reduced and d...
Enron was on the of the most successful and innovative companies throughout the 1990s. In October of 2001, Enron admitted that its income had been vastly overstated; and its equity value was actually a couple of billion dollars less than was stated on its income statement (The Fall of Enron, 2016). Enron was forced to declare bankruptcy on December 2, 2001. The primary reasons behind the scandal at Enron was the negligence of Enron’s auditing group Arthur Andersen who helped the company to continually perpetrate the fraud (The Fall of Enron, 2016). The Enron collapse had a huge effect on present accounting regulations and rules.