When you hear the name Tyco International, many think of the biggest security company in the world. First founded in1960, Tyco was a corporation from Schaffhasusen, Switzerland. The company was started by a man named Arthur J. Rosenberg, specializing in investments and holding company with two segments: Tyco Semiconductors and The Materials Research Laboratory. Its headquarters of operation is located in Princeton, New Jersey(2). The company is broken down into two major parts: Security Solutions and Fire Protection. In the 1970s Tyco as a company made their moves to the stock market. They reached consolidated sales and stockholder equity reaching $34 million and $15 million(2). Towards the end of the decade, Tyco reached sales of over 500
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When they sold the $7.5 million of stock and turn it around to profited over $450 million dollars, they were able to play with the books and write the bonus checks that got them caught at the end. It seems like the lavish lifestyle of Dennis and greed got the best of him and his partner. After being tried, Dennis and Mark were sentences to 8-25 years in prison. Although, the CEO and the CFO were sentences to prison, Tyco still had a class-action lawsuit that forced them to pay $2.92 billion to the investors of the company(1). The company took a big hit on loosing their top preforming CEO that was mention as a Top 25 corporate managers by Business Week (2). Now, looking back at the actions that were taken on this accounting fraud, there could have been many things that could have taken place on Tyco’s behalf to save them from this major incident. I’m sure that the company has many accountants that are looking at the books at any one time. They could have seen the over inflation of stock share revenue that was sold from their own CEO. If they didn’t see that in their books, I’m sure when their own accountants did their end of year audits to see where their money went. They could have seen that some unnecessary bonuses and benefits were issued to the CEO and
When they sold the $7.5 million of stock and turn it around to profited over $450 million dollars, they were able to play with the books and write the bonus checks that got them caught at the end. It seems like the lavish lifestyle of Dennis and greed got the best of him and his partner. After being tried, Dennis and Mark were sentences to 8-25 years in prison. Although, the CEO and the CFO were sentences to prison, Tyco still had a class-action lawsuit that forced them to pay $2.92 billion to the investors of the company(1). The company took a big hit on loosing their top preforming CEO that was mention as a Top 25 corporate managers by Business Week (2). Now, looking back at the actions that were taken on this accounting fraud, there could have been many things that could have taken place on Tyco’s behalf to save them from this major incident. I’m sure that the company has many accountants that are looking at the books at any one time. They could have seen the over inflation of stock share revenue that was sold from their own CEO. If they didn’t see that in their books, I’m sure when their own accountants did their end of year audits to see where their money went. They could have seen that some unnecessary bonuses and benefits were issued to the CEO and