The professional term for this type of fraud is called round-trip trading. “Round-trip trading artificially inflates volume [of sales] and revenues, but in reality adds no profit” (Bostan & Grosu, 2010). When Wall Street Analyst Richard Grubman asked Enron’s CEO for the company’s balance sheet along with its earnings statements, Enron stated that they could not release them (Core, 2010, p. 273-287). As stated earlier, because of Enron’s unethical accounting practices, the company filed for bankruptcy, but it also had a tremendous effect on many other people. Investors lost millions of dollars, along with the price of Enron’s share, which dropped for $90 US to just pennies.
However, the UK Government insists its links with Enron have neither changed policy nor bought access to ministers. A second front of allegations emerged over Labor’s close ties with Andersen, Enron’s accountants, a company barred from government work for failing to prevent the DeLorean car company collapse. This ban was later lifted, which has caused the rise of awkward questions
1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million, along with 2% interest rate.
The defense of Snowden is mainly those comparing him to a muckraker exposing the wrong doings of big businesses during the Progressive Era. Edward Snowden told The Guardian newspaper “I’m just another guy who sits there day to day in the office, watching what’s happening, and goes, “This is something that’s not our place to decide. The public needs to decide whether these programs or policies are right or wrong”.  This argues against those saying Snowden thought he had the right to choose what got leaked, he simply wanted the people to choose. Edward’s leaks did not contain any U.S. secret plans, identities of agents or secret algorithms.
The Wells Fargo Fake Account made national headlines in mid-2016 different from other historical scandals such as Enron and Volkswagen engineers and their emissions “workaround.” The Wells Fargo scandal did not include a few wrongdoers within the organization, instead the unethical behaviors was widespread at the bank with thousands of employees being involved. According to a lawsuit filed by the state of California against Wells Fargo in May 2015, it claims employees engaged in “unlawful and fraudulent conduct, including opening customer accounts and issuing credit cards without authorization” and the bank “has known about and encouraged these practices for years.” The suit also cites “the results is that Wells Fargo has engineered a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profits.” The shocking scandal of 2016 is employees of Well Fargo secretly created over 2 million new bank and credit card accounts for over 15,000 customers without their knowledge, resulting in overdraft and other fees. This ethical dilemma also resulting in 5,300 Wells Fargo employees’ termination, and copious amounts of fines and monies reimbursements to be paid to consumers and the government.
Yet, the Madoff Ponzi scheme appears intricately designed, longer withstanding, and executed exclusively by Madoff. Both men lobbied to deregulate the government role in each of their perspective fields and each organization had a lack of transparency in record keeping. Madoff used a single accountant an hour away from New York which he claims was to hide his success method (Frontline, 2009). Enron’s accountants played duplicate roles within the company, creating a conflict, and each organization hired inexperienced employees that would not raise alarms or question workplace functions. The levels of deceit for both cases branched out to involve lawyers, accountants, and other investors.
In 1935, his former studio merged with Darryl F. Zanuck 's powerhouse, 20th Century Pictures. The 25-year lifespan of the Fox Film Corporation was a strong one, and Fox’s impact on the industry did not end after his ousting. 20th Century Fox began an unprecedented run of unforgettable movies that continue to this day, making some of the worlds highest grossing films in history. Fox had a vast impression on the form and content of motion pictures, having contributed to the art, technology and business of film. As the 20th Century Fox website states
From then on the American people have started to wonder if they can trust the president because Nixon was very secretive and dishonest throughout the scandal. Nixon got the help of a couple burglars who stole many documents and recorded phone conversations. This scandal was illegal and caused President Nixon to resign. The Watergate Scandal was a major event in the 20th century and changed politics in America
12, 2002: A criminal indictment accusing Kozlowski and Swartz of “enterprise corruption for allegedly stealing more than $170 million from Tyco and obtaining $430 million by fraud in the sale of company shares.” Mark Belnick is charged separately with falsifying records to conceal more than $14 million in company loans. Dec. 17, 2002: Board member Frank Walsh pleads guilty in an alleged scheme to hide the $20 million in fees for the CIT Group deal. Oct. 7, 2003: The first trial of Kozlowski and Swartz begins with opening statements in which prosecutors characterize them as “crime bosses who looted Tyco.” Defense lawyers call them “honest executives who deserved and disclosed all corporate payments and perks.” Oct. 28, 2003: The jury is shown a video of a birthday party Kozlowski threw for his wife in Italy. Tyco paid almost half the $2 million cost of the event. Nov. 25, 2003: Prosecutors show the jury a video of the $6,000 shower curtain and other expensive interiors at Kozlowski's Tyco-owned apartment in New York.
Today, Arthur Andersen & Co. is notoriously known for its’ unethical behavior of collusion with Enron, leading to thousands of hard working Americans losing millions of dollars. This type of behavior shows how far Arthur Andersen & Co. has strayed from its original foundation of honesty and integrity, instilled in it by the founder and senior partner Arthur E. Andersen. Originally named Arthur, DeLany & Co. in 1913 then soon changed to Arthur Andersen & Co., Andersen sought to challenge the status quo of the public accounting system. Andersen continually forged new ways of serving his clients, training his employees and growing his company. Using the motto “Think Straight-Talk Straight,” Andersen challenged traditional accounting practices