RECENT MAJOR WHITE-COLLAR CRIME SENTENCES Allen Stanford. Sentence: 110 years Allen Stanford, 63, was a Texan financier accused of running a $7 billion Ponzi scheme. He had investors invest billions of dollars into his bank, and then spent the money on private jets, yachts and acres of undeveloped Antiguan land among other expenditures. In December 2008 Stanford International Bank had $88 million in cash, but it fudged its numbers to say it had $1 billion in assets. In the same month it finally owed investors $7 billion when they tried to pull out their money, and the bank had no money to cover the costs. In 2012, a jury found Stanford guilty of conspiracy, along with 12 other criminal charges including obstruction. He was found innocent of one wire fraud charge. Stanford was sentenced to 110 years in federal prison. Bernard Madoff, Businessman. Sentence: 150 years Madoff, 72, directed one of the largest Ponzi schemes in U.S. history. Madoff, in his role as CEO of Bernard L. Madoff Investment Securities LLC, stole from his clients in a $65 billion Ponzi scheme. Despite a continuing decline in the economy, Madoff continued to assure his clients that his numbers (investment returns) would continue rising. As the economy continued to decline, Madoff’s increases became suspicious and clients began to contact him to get their money back. When the requests for returned funds reached $7 billion, Madoff met with his sons and told them that his business was fraudulent. The sons turned Madoff in to the authorities. In 2009, Madoff pleaded guilty to, among other things, securities fraud, wire fraud, money laundering, making false filings with the SEC, and making false statements. He was sentenced to the maximum 150 years in prison for his offenses. His projected release date is November 14, 2159. Since Madoff’s plea, David Friehling from his accounting department has pled guilty to securities fraud, investment advisor fraud, and making false filings with the SEC. Additionally, Frank DiPascali has pled guilty to securities fraud, investment advisor fraud, mail fraud, wire fraud, income tax evasion, international money laundering, falsifying books and records, and more. Joseph Naccio. Sentence: 6 years Joseph Naccio, 60, was the chief financial officer and chairman of the board for Qwest Communications International. Qwest is a telecommunications provider in the western United States. When the economy began to decline, Naccio continued to assure Wall Street that the company would continue making large returns even though he knew that such returns would not occur. Based on inside information, Nacchio sold $52 million of Qwest stock just before the prices fell. In 2007, Naccio was convicted on 19 counts of insider trading and sentenced to 6 years in federal prison. Additionally, Naccio was ordered to pay a $19 million fine and restitution of the $52 million he had made as a result of illegal stock transactions. Although his conviction was overturned in 2008 ...

1. RECENT MAJOR WHITE-COLLAR CRIME SENTENCES
Allen Stanford. Sentence: 110 years
Allen Stanford, 63, was a Texan financier accused of running a
$7 billion Ponzi scheme. He had investors invest billions of
dollars into his bank, and then spent the money on private jets,
yachts and acres of undeveloped Antiguan land among other
expenditures. In December 2008 Stanford International Bank
had $88 million in cash, but it fudged its numbers to say it had
$1 billion in assets. In the same month it finally owed investors
$7 billion when they tried to pull out their money, and the bank
had no money to cover the costs.
In 2012, a jury found Stanford guilty of conspiracy, along with
12 other criminal charges including obstruction. He was found
innocent of one wire fraud charge. Stanford was sentenced to
110 years in federal prison.
Bernard Madoff, Businessman. Sentence: 150 years
Madoff, 72, directed one of the largest Ponzi schemes in U.S.
history. Madoff, in his role as CEO of Bernard L. Madoff
Investment Securities LLC, stole from his clients in a $65
billion Ponzi scheme. Despite a continuing decline in the
economy, Madoff continued to assure his clients that his
numbers (investment returns) would continue rising. As the
economy continued to decline, Madoff’s increases became
suspicious and clients began to contact him to get their money
back. When the requests for returned funds reached $7 billion,
Madoff met with his sons and told them that his business was
fraudulent. The sons turned Madoff in to the authorities.
In 2009, Madoff pleaded guilty to, among other things,
securities fraud, wire fraud, money laundering, making false
filings with the SEC, and making false statements. He was
sentenced to the maximum 150 years in prison for his offenses.
His projected release date is November 14, 2159. Since
Madoff’s plea, David Friehling from his accounting department
has pled guilty to securities fraud, investment advisor fraud,

2. and making false filings with the SEC. Additionally, Frank
DiPascali has pled guilty to securities fraud, investment advisor
fraud, mail fraud, wire fraud, income tax evasion, international
money laundering, falsifying books and records, and more.
Joseph Naccio. Sentence: 6 years
Joseph Naccio, 60, was the chief financial officer and chairman
of the board for Qwest Communications International. Qwest is
a telecommunications provider in the western United States.
When the economy began to decline, Naccio continued to assure
Wall Street that the company would continue making large
returns even though he knew that such returns would not occur.
Based on inside information, Nacchio sold $52 million of Qwest
stock just before the prices fell.
In 2007, Naccio was convicted on 19 counts of insider trading
and sentenced to 6 years in federal prison. Additionally, Naccio
was ordered to pay a $19 million fine and restitution of the $52
million he had made as a result of illegal stock transactions.
Although his conviction was overturned in 2008 because of
improperly excluded expert testimony, the conviction was
reinstated in 2009 when he finally began serving his six-year
term.
Jamie Olis, Vice President of Finance. Sentence: 24 years
Jamie Olis, 38, was vice president of finance and senior director
of tax planning at Dynergy, a natural gas energy company. Olis
attempted to conceal more than $300 million in company debt
from public investors. When the attempted concealment was
discovered, millions of investor dollars were lost, including a
$105 million loss suffered by 13,000 participants in the
California Retirement Plan.
In 2004, Olis was sentenced to 292 months in prison after being
convicted of securities fraud, mail fraud, and three counts of
wire fraud. The 24-year sentence is one of the longest terms for
fraud in U.S. history, in part because of the large financial
losses to thousands of investors. In addition to the jail time,
Olis was fined $25,000. Olis, however, did not act alone in the
concealment. Gene Foster and Helen Sharkey, both former

3. Dynergy executives, pled guilty to conspiracy and aided in the
investigation. They then entered into a plea bargain under which
Foster and Sharkey were to receive sentences of up to 5 years in
prison and $250,000 in fines.
In 2004, Quattrone was found guilty of obstruction of justice.
He was sentenced in September 2004 to 18 months’ prison and 2
years’ probation. He was also fined $90,000. Near the end of
that year, the National Association of Securities Dealers
permanently banned Quattrone from the securities industry,
although he had planned to appeal the ban to the Securities and
Exchange Commission.
Richard Scrushy, CEO of HealthSouth
Richard Scrushy, the founder of HealthSouth, is no stranger to
white-collar criminal allegations. After being acquitted of
charges under the Sarbanes-Oxley Act for lack of evidence in
2005, Scrushy was indicted on new charges a mere four months
later. The new charges were for bribery and mail fraud linked to
former Alabama Governor Don Siegelman. The charges
involved fraud through exchanging campaign funds for political
favors.
Scrushy was ultimately found guilty by a federal jury in 2006
for bribery, mail fraud, and obstruction of justice. He was
sentenced in 2007 to almost 10 years’ imprisonment, in addition
to having to pay a fine of $150,000 and an additional $267,000
in restitution to the United Way. Scrushy is currently in jail.
Walter Forbes, CEO of Cendant Corporation
In 2004, Walter Forbes went on trial for fraudulently inflating
the company’s revenue by $500 million to increase its stock
price. Forbes was charged with wire fraud, mail fraud,
conspiracy, and securities fraud. In addition, Forbes was also
accused of insider trading of $11 million in Cendant stock only
weeks before the accounting scandal was discovered. The
former vice president was also charged with similar crimes. The
Cendant CFO testified against both the vice president and
Forbes, saying that he was asked to be “creative” in
reorganizing revenue.

4. Despite his persistent use of the “dumb CEO defense” (I did not
know about the wrongdoing), Forbes was found guilty in his
third trial, which lasted all of 17 days. In January 2007, Forbes
was sentenced to 12 years and 7 months in federal prison. He
was also required to pay $3.275 billion in restitution.
Kenneth Lay, CEO of Enron
In 2004, Kenneth Lay went on trial, pleading not guilty to 11
felony counts, including wire fraud, bank fraud, securities
fraud, and conspiracy, for his part in falsifying Enron’s
financial reports, and denying that he profited enormously from
his fraudulent acts. The extent of the fraud was discovered when
the energy company went bankrupt in late 2001. As a result of
the accounting fraud, Enron’s stock plummeted, leaving
thousands of people with near-worthless stock, hitting
retirement funds especially hard.
The Securities and Exchange Commission also filed a civil
complaint against Lay, which could have led to more than $90
million in penalties and fines. Lay was accused of selling large
amounts of stock at artificially high prices, resulting in an
illegal profit of $90 million.
On May 25, 2006, Lay was found guilty of 10 of the 11 counts
against him. Each count carried a maximum 5- to 10-year
sentence, which would have amounted to 50 to 100 years
maximum, with most commentators predicting a 20- to 30-year
sentence. On July 5, 2006, however, Lay died of a heart attack
before the scheduled date of his sentencing. Due to his death,
the federal judge for the Fifth Circuit, pursuant to Fifth Circuit
precedent, abated Lay’s sentence. The abatement made it as if
Lay had never been indicted.
Bernie Ebbers, CEO of WorldCom
In 2004, Bernie Ebbers, former CEO of the bankrupt phone
company WorldCom, pleaded not guilty to three counts of fraud
and conspiracy. The accounting fraud, which involved hiding
expenses and inflating revenue reports, left $11 billion in debt
at the time of the bankruptcy. The former CFO of WorldCom,
Scott Sullivan, pleaded guilty to fraud and agreed to assist in

5. the prosecution of Ebbers. Sullivan faced up to 25 years in
prison for his role in the accounting scandal. In addition, MCI
sued Ebbers to recover more than $400 million in loans that he
took from WorldCom, now called MCI.
Bernie Ebbers, in one of the longest prison sentences given to a
former CEO for white-collar crimes, was sentenced in 2005 to a
25-year prison term in a federal prison. Ebbers, 63 years old at
the time of his sentencing, began serving his term in federal
prison in 2006.
Dennis Kozlowski, CEO of Tyco International
In a second trial in early 2005 after a mistrial, Dennis
Kozlowski faced charges of corruption and larceny for stealing
more than $600 million from Tyco International and failing to
pay more than $1 million in federal taxes. Kozlowski had Tyco
pay for such over-the-top expenses as a $15,000 umbrella holder
and a $2,200 garbage can. Kozlowski’s sentence could have
been up to 30 years in prison.
Kozlowski, as well as former Tyco CFO Mark Swartz, was
sentenced to 8 years and 4 months to 25 years. Unlike other
CEOs convicted for white-collar crimes, such as Bernie Ebbers,
Kozlowski was convicted in state court. In addition to his prison
sentence, to be served in a New York state prison, Kozlowski,
with Swartz, was also ordered to pay $134 million to Tyco. In
addition, Kozlowski was also fined an additional $70 million.
Kozlowski is currently serving his term in prison.
· Select three of these "criminals," and discuss their offenses,

6. punishment, and how it is affecting ongoing business today.
· When the next edition of this text is published in 2016, who
do you think will have been added to this list of the convicted?
Points: 175
Assignment 4: Change Management Plan
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
Section 1: Change Management Plan
1a. Describe the organization in terms of industry, size, and
history.
Weight: 10%
Did not submit or incompletely described the organization in
terms of industry, size, and history.
Partially described the organization in terms of industry, size,
and history.
Satisfactorily described the organization in terms of industry,
size, and history.
Thoroughly described the organization in terms of industry,
size, and history.
1b. Describe how the HR program / policy / process / procedure
/ initiative that has been proposed should be changed.
Weight: 10%
Did not submit or incompletely described how the HR program /
policy / process /procedure / initiative that has been proposed
should be changed.
Partially described how the HR program / policy / process /
procedure/ initiative that has been proposed should be changed.

7. Satisfactorily described how the HR program / policy / process /
procedure / initiative that has been proposed should be changed.
Thoroughly described how the HR program / policy / process/
procedure / initiative that has been proposed should be changed.
1c. Describe three (3) reasons why this change is important to
make.
Weight: 5%
Did not submit or incompletely described three (3) reasons why
this change is important to make.
Partially described three (3) reasons why this change is
important to make.
Satisfactorily described three (3) reasons why this change is
important to make.
Thoroughly described three (3) reasons why this change is
important to make.
1d. Describe the recommended change.
Weight: 5%
Did not submit or incompletely described the recommended
change.
Partially described the recommended change.
Satisfactorily described the recommended change.
Thoroughly described the recommended change.
1e. Develop a strategy that illustrates how you would address
each of the eight (8) Stages of Change.
Weight: 5%
Did not submit or incompletely developed a strategy that
illustrates how you would address each of the eight (8) Stages
of Change.
Partially developed a strategy that illustrates how you would
address each of the eight (8) Stages of Change.
Satisfactorily developed a strategy that illustrates how you
would address each of the eight (8) Stages of Change.
Thoroughly developed a strategy that illustrates how you would
address each of the eight (8) Stages of Change.
1f. Identify potential resistance to change and describe how the
resistance would be managed.

8. Weight: 5%
Did not submit or incompletely identified potential resistance to
change and did not submit or incompletely described how the
resistance would be managed.
Partially identified potential resistance to change and partially
described how the resistance would be managed.
Satisfactorily identified potential resistance to change and
satisfactorily described how the resistance would be managed.
Thoroughly identified potential resistance to change and
thoroughly described how the resistance would be managed.
1g. Outline at least three (3) communications strategies you
would use.
Weight: 5%
Did not submit or incompletely outlined at least three (3)
communications strategies you would use.
Partially outlined at least three (3) communications strategies
you would use.
Satisfactorily outlined at least three (3) communications
strategies you would use.
Thoroughly outlined at least three (3) communications
strategies you would use.
1h. Propose two (2) diagnostic tools to identify the changes that
need to be made in organization.
Weight: 5%
Did not submit or incompletely proposed two (2) diagnostic
tools to identify the changes that need to be made in
organization.
Partially proposed two (2) diagnostic tools to identify the
changes that need to be made in organization.
Satisfactorily proposed two (2) diagnostic tools to identify the
changes that need to be made in organization.
Thoroughly proposed two (2) diagnostic tools to identify the
changes that need to be made in organization.
1i. Recommend two (2) strategies for sustaining the change.
Weight: 10%
Did not submit or incompletely recommended two (2) strategies

9. for sustaining the change.
Partially recommended two (2) strategies for sustaining the
change.
Satisfactorily recommended two (2) strategies for sustaining the
change.
Thoroughly recommended two (2) strategies for sustaining the
change.
1j. 4 references
Weight: 5%
No references provided
Does not meet the required number of references; some
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
Section 2: PowerPoint Presentation
2a. Summarize the main points in the written report.
Weight: 10%
Did not submit or incompletely summarized the main points in
the written report.
Partially summarized the main points in the written report.
Satisfactorily summarized the main points in the written report.
Thoroughly summarized the main points in the written report.
2b. Create bulleted speaking notes for the presentation to the
shareholders in the Notes section of the PowerPoint.
Weight: 10%
Did not submit or incompletely created bulleted speaking notes
for the presentation to the shareholders in the Notes section of
the PowerPoint.
Partially created bulleted speaking notes for the presentation to
the shareholders in the Notes section of the PowerPoint
Satisfactorily created bulleted speaking notes for the
presentation to the shareholders in the Notes section of the
PowerPoint
Thoroughly created bulleted speaking notes for the presentation

10. to the shareholders in the Notes section of the PowerPoint
2c. Use a professional technically written style to graphically
convey the information.
Weight: 5%
Did not submit or incompletely used a professional technically
written style to graphically convey the information.
Partially used a professional technically written style to
graphically convey the information.
Satisfactorily used a professional technically written style to
graphically convey the information.
Thoroughly used a professional technically written style to
graphically convey the information.
3. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 8 errors present
5-6 errors present
3-4 errors present
0-2 errors present