Enron

Summary of Issue. On October 20, David Newman contacted Human Resources to report an incident at the 25 Industrial Avenue site where human feces appeared to have been smeared on a toilet seat in one of the men’s bathrooms. Jeremy Varney, who is located at the site, reported the incident to David. Discussion with Jeremy Varney and Vincent Brown. Jeremy Varney Jeremy stated that he became aware of the incident through his direct report Vincent Brown. He reported the incident to David Newman…

Imagine this, you finally saved up enough money for a down payment on the new car you’ve always dreamed of owning. The big day arrives and you go to the dealership, test drive several cars and finally decide on the one you want to purchase. The sales person directs you to the finance department to complete the sales transaction. After filling out all the forms to get a car loan and anxiously waiting for what seems like an eternity, the salesperson delivers some horrible news to you, “You have…

On August 4, 2009, the Securities and Exchange Commission (SEC) fined General Electric Company (GE), $50M for reporting false and misleading financial statements. The transactions occur were not in compliance with Generally Accepted Accounting Principles (GAAP). Furthermore, the four accounting violations occur in 2002 and continued through 2003. The SEC identified risks that uncovered four separate accounting violations, and GE corrected the last of the violations in 2008. The violations are as…

In 2003 Dominican Republic went through the biggest economic crisis in our history. A massive fraud involving Baninter, the country´s second largest bank, produced a general crisis. The damage to the economy was immense; People started referring to it as the hole generated by Baninter. High executives of this bank were laundering money and setting an important part of the income that it perceived in deposits into an external system or a parallel bank that they had created. The scandal was huge…

Did you know that Andrew Carnegie gave away around 350 million dollars. Andrew Carnegie Grew poor in Dunfermline, Scotland, but in 1901 he was the richest man in America. Andrew Carnegie's philanthropy made him a hero because he gave large amounts of money away, he gave jobs to others, and because of his motto. One reason he was a hero was that he gave away large amounts of money. Carnegie gave away around 350 million dollars to other people. Carnegie was the top money giver; twice as much as…

he company of Nortel looked invincible and financially stable from the outside. Roth helped the company to changing times through the introduction of internet networking. But, unethical practice led to the eventual doward spiral and liquidation of Nortel. If accurate financial statements showed the true economic situation of Nortel, then investors and others could make bettter decisions. This would provide Nortel a foundation to stand on and continual growth during the economic recession. .…

I have selected Bernard Madoff, stock broker and financial adviser at Bernard L. Madoff Investment Securities and he was a former chairman of NASDAQ as an unethical leader. He promised investors large returns on their investment. He started a Ponzi Scheme that pays its investors by recruiting new investor so that the principal they pay can be used to pay older investors. He would let the investors know how they are making periodically without any real returns. He told them that it was due to…

There were many factors that contributed to NFL players losing a large portion of their wealth to financial investors. The NFL players association (NFLPA) provides their players with a list of financial advisors. These advisors pay a membership fee and the league supposedly puts candidates though an extremely intense background check. Unfortunately for many NFL players, they started working with a financial advisor that caused many of them to lose large amounts of money in investments. The…

What is The Sarbanes-Oxley Act (SOX)? It may be one of the most pivotal financial acts to have come about in recent history. It is a law that was enacted in 2002 and signed by President George W. Bush (U.S Securities and Exchange Commission 2013). The Securities and Exchange Commission (SEC) enforce this law to regulate changes in financial practices and corporate governance. The main purpose of SOX is to protect shareholders and the public from accounting fraud and errors. Fundamentally,…

Coal companies are making big bucks by digging up land in search of coal and in the process they’re barely cleaning up the mess they made. They have the money to do the cleaning up, but they don’t want to pay it. Even regulators are fearing a one billion dollar coal cleanup bill. If it was up to the coal companies they would leave the $1 billion bill for the taxpayers to deal with. Michael Corkery states that, “ The regulators worry that coal companies will use the bankruptcy courts to pay off…