What do Enron, Tyco, and World-com have in common
The purpose of this work is to show you what happens when you try to cheat the system. the reason the government does audits and checks for so many frauds is because people nowadays will do whatever it takes to make a little extra money. What these companies did not only hurt themselves in the long run but hurt the millions of workers and families that were connected with them.
The Companies Enron was formed in 1985 by two gas companies, Houston Natural Gas and Nebraska InterNorth.Enron incurred massive debt and, as the result of deregulation, no longer had exclusive rights to its pipelines. In order to survive, the company had to come up with a
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He was living the High live spending share holder money and finally resigned on June 2 2002.Kozlowski’s successor at Tyco replaced 220 of the firm’s 250 top managers and all board members who had served under Kozlowski had resigned by 2003. WorldCom Came to be in 1995 after being originally known as Long distance discount company. It became a well known company after the merger of them and MCI Communications in 1998. At this point they became the second largest communications company in the United States. In 1999 they almost made a deal with Sprint to merge which would make them the largest company, but it was pressured by the US Department of Justice not to go through in fear of creating a monopoly. This caused a major decline of WorldCom stock. CEO Bernard Ebbers persuaded the board of directors to give him loans and guarantees of over $400 million, hoping that he would cover his margin calls. Instead he used it to finance his other businesses and hobbies, and was finally fired as CEO in April 2002. By July 2002 they had filed for bankruptcy and it was estimated that the company inflated their assets by about $11 billion.
The costs The fraud that These major companies committed is just ridiculous. They would lie about not only the costs they had but would also overstate the amount of profit that they were receiving. “Kozlowski and Swartz both resigned in the summer of 2002. On June