Enron Corporation was an American energy, commodities, and Services Company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world leading electricity, natural gas, communications, and pulp and paper companies, with claimed revenues of nearly $101 billion in 2000. At the end of 2001, it was revealed that it’s reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud, known as the "Enron scandal". Enron has since become a popular symbol of wilful corporate fraud and corruption. The Enron scandal was a financial scandal involving Enron Corporation and its accounting firm Arthur Andersen that
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It is in charge of almost 50% of the dairy products in Italy. This company is an international business which does not only run in Italy that makes the scandal a huge affair. This company’s founder and CEO is a man who ran the small bakery, but he changed this to an international business in 1961 as he grew old. The key issue for this scandal is, there is an understating debts, overstating assets, losses were hidden and there are a lot of the money went towards the Tanzi family and its subsidiaries.
The issues that occur were that Tanzi withdrew $630 million from the company for personal used. He used that money for an additional family-owned business. To show fake profits for the company, he set up fake companies. The finance director also participated in changing documents by forging the Bank of America letterhead and used it to record that the bank account holds $4.98 …show more content…
Firstly is, Calisto Tonzi, the CEO and the founder of the company. He hired people to do his dirty work for him such as forging letterheads to get business. To make it possible, he hired Fausto Tonna, the former director, Gian Paolo who is said to be an outside counsel, which he is a part of a law firm and therefore is questions to whether he helped overcome the Italian laws. Next is Lorenza Penca which is the chairman of the auditing firm Grant Thornton in Italy and also a chief auditor for Parmalat.
Grant Thornton, who audited many of Parmalat’s operating units, has been under expulsion from the firm’s global network.Tanzi family is no longer in charge of the company, there is a new CEO, Fausto Tonna is given a two and a half year sentence in jail in the year 2008. Calisto Tanzi is given an 18 year sentence and many other family members as well as some other executive members have also been
It is in charge of almost 50% of the dairy products in Italy. This company is an international business which does not only run in Italy that makes the scandal a huge affair. This company’s founder and CEO is a man who ran the small bakery, but he changed this to an international business in 1961 as he grew old. The key issue for this scandal is, there is an understating debts, overstating assets, losses were hidden and there are a lot of the money went towards the Tanzi family and its subsidiaries.
The issues that occur were that Tanzi withdrew $630 million from the company for personal used. He used that money for an additional family-owned business. To show fake profits for the company, he set up fake companies. The finance director also participated in changing documents by forging the Bank of America letterhead and used it to record that the bank account holds $4.98 …show more content…
Firstly is, Calisto Tonzi, the CEO and the founder of the company. He hired people to do his dirty work for him such as forging letterheads to get business. To make it possible, he hired Fausto Tonna, the former director, Gian Paolo who is said to be an outside counsel, which he is a part of a law firm and therefore is questions to whether he helped overcome the Italian laws. Next is Lorenza Penca which is the chairman of the auditing firm Grant Thornton in Italy and also a chief auditor for Parmalat.
Grant Thornton, who audited many of Parmalat’s operating units, has been under expulsion from the firm’s global network.Tanzi family is no longer in charge of the company, there is a new CEO, Fausto Tonna is given a two and a half year sentence in jail in the year 2008. Calisto Tanzi is given an 18 year sentence and many other family members as well as some other executive members have also been