But throughout Guess has been producing counterfeit Gucci products from long period of time, but Gucci has failed to send cease letters to Guess. This clearly became a weak point for Gucci at courts because the judge knew that Gucci has been keeping an eye on Guess’ advertising, so knew about this trademark infringement for several years but never took immediate action. Therefore the court rejected the claims by Gucci. Gucci could have filed a case right from the
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
Abstract Charlene Battle, controller for Castle Corporation is preparing the company’s financial statements at year-end. She notes that the company lost a considerable amount on the sale of some equipment it had decided to replace. Since the company has sold equipment routinely in the past, Battle knows the losses cannot be reported as an unusual item. She also does not want to highlight it as a material loss since she feels that will reflect poorly on her and the company. She reasons that if the company had recorded more depreciation during the assets’ lives when they were in use, the losses would not be so great.
It was denied by two shareholders of Taro- Raging Capital and Grand Slam, saying that the deal value offered by Sun Pharma was not sufficient and the amount should have been $110 per share. In 2010, Sun Pharma was granted by Israeli court to close the deal in the U.S. by acquiring all outstanding shares of Taro. The takeover battle was elicited by Taro as at least two of their shareholders said that the company (Taro) was not being properly valued by Sun Pharma. But the private agreement contained the provision of option agreement which said that if the merger failed, Sun Pharma can buy out the controlling or promoter’s stake of Taro Pharma. Sun Pharma had already invested $105 million over the three years from the date of merger to acquire 36% stake.
“Chasing Madoff”, a documentary released in 2010 portrays the way the whistleblower, Harry Markopolos, uncovered Bernie Madoff’s fraud scheme and his ten-year struggle to get the SEC to investigate. The documentary begins with an introduction to Harry Markopolos and his former coworkers Frank Casey and Neil Chelo. The three men work in finance, with investment portfolios. They were aware that in the finance industry there was much talk about an investment company making their customers high returns. Casey came across some investment information from a client of Madoff and gives the information to Markopolos to look over.
Secret warehouses: The audit by Ernst & Young confirmed the EOW’s previous findings with respect to the secret warehouses, which were hired by RIC between October 2009 and June 2012 and costed RIC about 14.3 million in rent. The goods were shown as having been sold to dealers or distributors on RIC’s books, and invoices to this effect had also been generatedwith an intention to deciee and inflate sales figures: the siphoned off stock never left the warehouses. These figures were further complicated by RIC’s intentional failure to give an account for the stock returned to them by distributors and dealers: storing them in such warehouses, but leaving them off the books. Circular trading and off-the-books sales transactions: The audit revealed a number of extremely complex and circular transactions between RIC and companies owned by Sanjay Mishra, through whom the company was supplied with staffing services. RIC seemingly sold goods that need to be repaired to Mishra-owned Shivam Enterprises and Oriya Sales for 352
Although in reality, CEO Dennis Kozlowski, CFO Mark Swartz, and former General Counsel Mark Belnick were suspects of giving themselves very low interest rate loans or no interests loans, (sometimes even reported as bonuses) that were never approved by the Tyco board and has also never been repaid. Some of these so called “loans” were a portion of “Key Employee Loan” program. This program had also been investigated and found that they have been selling stock without reporting it with their investors, which is a requirement with the SEC. Kozlowski, Swartz, and Belnick reportedly stole over $600 million dollars from Tyco through their unapproved bonuses, loans, and company spending. There are also rumors of their extravagant spending such as a $2,000 trash can, $6,000 shower curtain, and a $2 million-dollar birthday party for Kozlowski’s wife in Italy; these are only a few examples of their outrageous abuse of company spending!
For example, the Ford the automobile company has continually been bailed out by the government after receiving net losses (Bell, 2015). The bankruptcy of Ford would result in loss of thousands of jobs, which would make the government and its leaders look bad. Therefore, the bail-out of Ford does not make economic sense, but has political sense, since it would damage the image of the current leaders and their political parties. With a good Authoritarian leader, such a company would not be bailed-out but the government would invest those resources in development projects. Authoritarian governments can easily focus on long-term developmental
Enron was also able to hide their losses through the transfer of troubled assets which were falling in value to the SPEs, which means the losses were kept off the books. Enron has been conducting business through thousands of SPEs, and some of them were LJM Cayman LP and LJM2 Co-Investment LP. LJM partnerships invested in another group of SPEs, called the Raptor Vehicles, which were designed to hedge Enron investment in a bankrupt broadband company, Rhythm Net Connections. Enron issued common stock in exchange for a note receivable of $1.2 billion as a part of the capitalization of the Raptor entities. Enron increased notes receivable and shareholder’s equity to reflect this transaction, which violate the GAAP.
This was primarily because of the fact that they focused more on the risk that WorldCom revenues would be misstated because of errors or inaccurate records, not by deliberate misrepresentation even after the WorldCom employees told the auditors of the $34mn in line-cost accruals after the first quarter of 2000. Despite Andersen’s risk management software rating the WorldCom a “high-risk” client for committing fraud, the Andersen audit team for WorldCom maintained its status at “moderate-risk” client and Anderson considered them the firm’s “Crown