Case Analysis: Crazy Eddie Inc.

900 Words 4 Pages
Crazy Eddie
Eddie Antar, better known as “Crazy Eddie,” is a very prevalent fraudster in the world of accounting. Antar is well known for his schemes regarding Crazy Eddie Electronics, the company he cofounded with his father. Eddie was a family man, a ladies man, and a rich man. Eddie was a millionaire, with roughly 53 million dollars in swiss bank accounts until he was caught by the downfall of his family
Antar was born in Brooklyn, NY on December 18, 1947. He grew up in Brooklyn, with his mother and father. Antar attended Abraham Lincoln High School in Brooklyn until he chose to drop out of school. Upon dropping out of school, Antar went into business with his father, and later became a cofounder of Crazy Eddie Inc. alongside his father.
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The Panama pump was a scheme that laundered money before the company was public, then that money was put back into the public company, causing inflated revenues and profits. Fraudulent asset evaluations occurred when Antar overstated the inventory assets to inflate reported profits. Understated accounts payable was completed by suppliers invoicing the shipments into different accounting periods than when they were actually delivered. Antar committed debit memo fraud when he claimed false purchase discounts that inflated his profit margin. Lastly, Antar made slight changes in the accounting policies to cover up some of the fraud he was …show more content…
Antar was a self proclaimed ladies man, and was in turn unfaithful to his wife. Eddie’s father was given a tip that Eddie would be spending New Year’s Eve with his mistress, so his father sent his sister, daughter in law and Eddie’s wife to the same location that Eddie would be, revealing his infidelity. After Eddie and his wife battled it out in a street fight, Eddie vowed revenge on his father and the close family members that had set him up for divorce. By 1987, Crazy Eddie Inc. started losing money for the first time in almost twenty-four years. Eddie married his mistress while his father was trying to convince Eddie’s first wife to to sue Eddie for fraud and get her divorce settlement voided. These conflicts are said to be what contributed to Antar’s weak financial performance in 1987. Eddie and his son started to hear rumors of a hostile takeover by investors who had no idea that the company was a fraud. Eddie and his son Sam feared that the takeover would result in his fraud being

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