Timeline: Refco Inc. announced on October 10, 2005 that it’s CEO and chairman, Phillip R. Bennett had hidden information about $430 million in bad debts from the company's auditors and investors, and that now he had agreed to take a leave of absence. It was discovered through an internal review over the preceding weekend that a receivable was owed to the company by an unnamed entity that eventually turned out to be controlled by Mr Bennett, as much as approximately US$430 million. It was later known that, Bennett had been buying bad debts from Refco so that it would need to write them off, and he was paying for the bad loans with money borrowed by Refco itself. How he managed to pull this off is, at the end of every quarter he had arranged
Although the company fraudulently induced investors and drew millions of dollars from them, the financial health and stability of the company between 2002 and 2006 became more and more unstable. By the 2004 fiscal year end Sky Holdings publicly reported that it had over $33 million in financial losses. The former CEO Ross Mandell used the investor funds instead to subsidize his own lifestyle and to richly compensate the other individual defendants by paying them hefty undisclosed commissions and perks for their participation in the stock manipulation scheme. Sky Capital did not have an operating history or
Home Construction Index during 2006. Not only were new homes being affected, but many subprime borrowers now could not withstand the higher interest rates and they started defaulting on their loans. This caused 2007 to start with bad news from multiple sources. Every month, one subprime lender or another was filing for bankruptcy. According to 2007 news reports, financial firms and hedge funds owned more than $1 trillion in securities backed by these now-failing subprime mortgages - enough to start a global financial tsunami if more subprime borrowers started defaulting.
MGMT 512 Corporate Governance Exam 1 Toshiba’s Accounting Scandal Yuko Omori Student No 52997 1. What had happened In 2015, Toshiba’s improper accounting scandal news hit the world. CEO Hisao Tanaka and board directors including two previous CEOs, Norio Sasaki and Atsutoshi Nishida, resigned the company. The company had overstated about 1.2 billion dollars in operating profits and was designated as Securities Alert by the Tokyo Stock Exchange (TSE). Independent investigation committee reported that the improper accounting was led by top managements, setting a higher target and creating an atmosphere where each company and subsidiary managers cannot resist.
In, Serbia on June 11, 2007, a family with the last name of Milosevic who was involved in a cigarette smuggling ring. This family had believed to earn tens of millions of euros from 1996 to 2001 (Reuters 2007.) Proceeds from their sales were transferred to offshore firms. Another incident that relates to the case in Serbia is in January of 1941; a German refugee and 4 others were convicted in Federal court for smuggling cigarette lighter sparkle wheels in an alleged scheme to cost the government $150,000 in unpaid imported tax (NYT 1941.) These groups of men had reportedly smuggled around 70,000 sparkle wheels.
The bankruptcy lead to criminal charges against Enron’s top executives. In 1987, two years after the company was established, Enron experienced its first crisis where they were on the brink of bankruptcy due to traders making bets on the oil markets. Also Louis Borget, one of the traders was also caught shuffling money into off shore accounts Kenneth Lay, the CEO, was informed by auditors about the wrong doings that was going on but he encouraged them to keep bringing in the money. The traders were fired after gambling away almost all of Enron’s money. Jeffrey Skilling was brought in by Lay under the conditions that Market
Also, CEO Brian M. Krzanich oversubscribed seventy two,173 shares of Intel Corporation stock in a very dealings that occurred on Mon, July 3rd. The shares were oversubscribed at a mean worth of $33.69, for a complete price of $2,431,508.37. Following the completion of the sale, the chief military officer currently owns 534,746 shares within the company, valued at $18,015,592.74. The revealing for this sale is found here. Over the last ninety days, insiders oversubscribed ninety one,921 shares of company stock price $3,130,162.
3.1 INCENTIVE/PRESSURE Incentives/Pressures are incentives of management or other employees to commit fraud. For example, The company is under pressure to meet debt covenants or obtain additional financing. In the case of MAS, the company has cash reserves of RM600 million when Tajuddin took over responsibility as CEO. He was leaved with an overlarge fleet and diminishing profits. Although the sales rose to RM4.1 Billion in the year ending March 3, 1994, profits fell from RM145.4 Million to RM7.7 Million.
SCAM - YES BANK IPO Yes bank was founded by Rana Kapoor in 2004. It is the fifth largest private sector bank in India.Yes bank got listed at Bombay stock exchange and national stock exchange on July 12, 2005. Its first issue opened on July 15, 2005. The total issue amount was 31500 lakhs. The issue size was 700 lakh shares and 1.75 crore shares were reserved for small investors.