The Enron case: from success to scandal to bankruptcy Suzzanne Uhland
Nobody would expect, and nobody was ready, for what would happen in the year 2001 when Enron filed for bankruptcy under one of the worst business scandals of all time in the United States. Let’s take small look at the Enron scandal .
The Enron case: from success to scandal to bankruptcy Suzzanne Uhland
Nobody would expect, and nobody was ready, for what would happen in the year 2001 when Enron filed for bankruptcy under one of the worst business scandals of all time in the United States. Let’s take small look at the Enron scandal .
This presentation talks about how series of accounting frauds followed by Enron to WorldCom to sunbeam to waste management Inc. leads to shut down of one of the biggest audit firm that was Arthur Andersen.
This presentation talks about how series of accounting frauds followed by Enron to WorldCom to sunbeam to waste management Inc. leads to shut down of one of the biggest audit firm that was Arthur Andersen.
The Unlucky 13: Lessons Learned from Companies Caught in the ActCase IQ
"The Unlucky 13: Lessons Learned from Companies Caught in the Act" explores corporate misconduct at 13 companies and the lessons we've learned from them. You can download the complete guide at: http://i-sight.com/the-unlucky-13-lessons-learned-from-companies-caught-in-the-act/
How does white collar crime affect society Who are the victims of w.pdflanuszickefoosebr429
How does white collar crime affect society? Who are the victims of white collar crime? How do
we measure the cost of white collar crime versus conventional crime? Why is it difficult to
determine the cost of white collar crime?
Solution
WHITE COLLAR CRIME EFFECT SOCIETY :
White-collar crimes refer to those crimes that are committed by people who enjoy power and
position in the society .These crimes are in defiance of the familiar theory that social pathology
is the underlying cause of all criminal behavior.
Money is the primary motive for white-collar crimes though sometimes the sheer thrill of gaining
attention and exhibiting wizardry (code breakers and security breach) have been the motivational
factors. White-collar crimes fall under a broad spectrum, which include financial
misappropriation, price fixing, accounting scandals, environmental violations by corporate
bodies, identity theft, security breaching by computer wizards etc. A couple of decades back
people were not so much aware about white-collar crimes. However, today there is increasing
awareness among the public with so many giant corporations like Enron, Exxon Mobil, being
caught in outright scandals and federal violations. In general the effects of white-collar crimes
are far-reaching and can cause seriously affect economy.
\"White-Collar Crimes\"Many people ask what is a white-collar crime These crimes are
extremely harmful to society There are many theories behind the dramatic difference in how
society responds to \"white-collar crimes\" and \"regular\" crimes. The white-collar criminals can
just pay their way back into society like nothing even happen.
VICTIMS OF WHITE COLLAR CRIME : The victims of white collar crime can be placed in
two broad categories: (1) voluntary victims, such as those exploited by swindlers and speculators
who promise a \'fast buck;\' and (2) involuntary victims, who are exploited in routine commercial
transactions that compose normalized economic and professional activities. Victims in the
second group might include creditors, competitors, employees, and customers. The relation
between the victim and perpetrator in all white collar crime is generally similar. It is nonviolent,
indirect, and impersonal, with the victim often being anonymous to the offender.
The cost of white collar crime versus conventional crime
•Usually involves deceit and concealment (rather than direct violence).
•Typically for the purpose of financial gain.
•Occurs in a business setting.
•Less chance of being caught and punished.
•Can be characterized as involving a violation of trust.
•More leniency from the justice system (“status shield” protects from harsh penalties of
“common” criminal offenders.
•Able to secure the best legal counsel.
CONVENTIONAL CRIME :
•Usually involves force or violence.
•Varying reasons for the commission of offenses.
•Usually occurs in non-business settings.
•More focused justice system response.
•Some crimes can involve violations of trust, but most .
"Accounting Theory" is a course of MBA in Jagannath University. This course is very important understanding all the aspects of accounting in business atmosphere.
TRADE TRIALS AND TRIUMPHSMale SpeakerInternational tr.docxturveycharlyn
TRADE: TRIALS AND TRIUMPHS
Male Speaker
International trade restrictions. According to one study, 93% of economists think such restrictions are a bad
idea because they reduce economic welfare. They believe the trade is the way to produce more, better, and
cheaper stuff and services for us all. The phrase often used to justify trade is "comparative advantage," an idea
that comes up throughout economic says Northwestern Professor Robert Gordon.
Robert Gordon
The real way to talk about comparative advantage is to talk about everyday people, and how about the
example of a lawyer? A woman lawyer, very talented at law but also able to type twice as fast as her male
secretary and what should she do? Should she be doing the typing? No. She should be out winning trials and
winning law cases and that male secretary plotting along at half the speed should be doing the typing because
she probably makes ten times as much as he does.
Male Speaker
And if she is making ten times as much, it means that to the economy, the lawyering is worth ten times as
much as the typing. The typist has a comparative advantage in typing because he can make more that way
than as a lawyer, which without a law degree can make a dime at. The lawyer has an obvious comparative
advantage in lawyering because no one will pay her that much to type. So both parties are better off by
specializing and then trading the fruits of what they do. But if this is the way to go within our country's borders,
why is trade consistently discouraged across borders by the various forms of what is called "protectionism"?
Because countries all over the world are under pressure to protect their local companies and workers from
foreign competition. They do so in several standard ways.
By imposing quotas, a ceiling on the amount of something that can be imported from another country or
imposing tariffs, taxes on all imports coming into a country or instituting other non-tariff barriers like subsidies
to domestic industries so they can price their goods below foreign competitors. For example, the U.S. imposed
tariffs on corn brooms made in Mexico to hike their price and thus, discourage Americans from buying them.
Why? Because the jobs of corn broom workers like those in this Alabama factory were threatened by corn
broom workers in Mexico making one-sixth what these folks were.
Male Speaker
I would not wish to compete, not with the kind of way that the Mexicans are earning, you know, a dollar. I can
live off --
Male Speaker
The same holds true in loads of industries, from textiles to steel. Why did free trade President George W. Bush
slap at 30% import tax on billions of dollars worth of steel from abroad in 2002? To protect American
steelworkers who are losing their job because of cheaper foreign imports.
Dan DiMicco is CEO of Nucor Steel, a low-cost U.S. producer, which historically oppose protectionism, but
even his company had began to feel the ...
PAGE 280APPLYING THE CONCEPTTRUTH OR CONSEQUENCES PONZI SCHEM.docxsmile790243
PAGE 280
APPLYING THE CONCEPT
TRUTH OR CONSEQUENCES: PONZI SCHEMES AND OTHER FRAUDS
In the financial world, you always have to be on the lookout for crooks. Fraud is the most extreme version of moral hazard, and it is remarkably common.
The term Ponzi scheme has its origins in a 1920 scam run by serial con artist Charles Ponzi. Promising a 50 percent profit within 45 days, he swindled unsuspecting investors out of something like $250 million in 2014 dollars. Ponzi never invested their money. Instead, he paid off early investors handsomely with the money he obtained from subsequent investors.
Financial laws are now far more elaborate than in Ponzi’s day, and governments spend much more to enforce them, but frauds persist.
Bernie Madoff is the leading recent example. For decades, Madoff was a respected member of the investment community and able to escape detection. In the same manner as Ponzi, Madoff was redeeming requests for funds with the money he collected from more recent investors. Madoff’s con, which may have begun as early as the 1970s, failed only when the financial crisis of 2007–2009 depleted his funds, making it impossible for him to pay off the final cohort of wealthy, sophisticated—yet apparently quite gullible—investors and financial firms. The Madoff scandal dwarfed Ponzi’s racket: at the time the scheme blew up, the losses were estimated at $17.5 billion, and extensive efforts at recovery have put final losses in the neighborhood of $7 billion.
Unfortunately, in a complex financial system, the possibilities for fraud are widespread. Most cases are smaller and more mundane than those of Madoff or Ponzi, but their cumulative size is significant. One source devoted to tracking just Ponzi-type frauds in the United States listed 70 schemes worth an estimated $2.2 billion in 2014 alone.*
We aren’t going to get rid of Ponzi schemes and other frauds (see In the Blog: Conflicts of Interest in Finance). But the mission of ferreting them out and prosecuting those responsible is essential. A well-functioning financial system is based on trust. That is, when we make a bank deposit or purchase a share of stock or a bond, we need to believe that the terms of the agreement are being accurately represented and will be carried out. Economies where property rights are weak and enforcement is unreliable also usually supply less credit to worthy endeavors. That means lower production, lower income, and lower welfare.
imagesIN THE BLOG
Conflicts of Interest in Finance
Financial corruption exposed in the years since the financial crisis is breathtaking in its scale, scope, and resistance to remedy. Traders colluded to rig the foreign exchange (FX) market, where daily transactions exceed $5 trillion, and to manipulate LIBOR, the world’s leading interest rate benchmark (see Chapter 13, Applying the Concept: Reforming LIBOR). Firms have facilitated tax evasion and money laundering. And Bernie Madoff engineered what was arguably the largest Ponzi.
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. I. Costs A. Crime is most often associated with the lower class (street crime) but crime in the business world is the most costly type of crime in the US. 1. Approx. $300 B lost to business crime each year compared to about $20 B for street crimes (violent and property). 2. In 2005, nearly 17,000 people were reported murdered in the US. In contrast, corporate crime may result in at least 20 million serious injuries and 30,000 deaths.
3. 3. Consumers often pay in the form of hidden costs. For example, Insurance fraud (non-health insurance) costs the average family between $400 and $700 per year, with a total cost exceeding $40 billion
4.
5. II. Turning a Blind Eye? A. Statistics on corporate crime are not collected on a regular basis by any official government agency B. Prosecution is unreliable and sporadic C. Since corporations cannot be prosecuted determining who is responsible can be difficult
6. III. Corporate Culture Theory A. Some businesses place high demands on employees while simultaneously maintaining a climate that is tolerant of employee deviance. 1. Differential Associations? (Fill in the blanks) a. b. c. B. Many corporate employees violate the law with enough frequency that they could be considered habitual criminals
7.
8. IV. Types of Business Crime A. Corporate Crime 1. Definition: Illegal acts committed for the economic benefit of the company in which the offender is employed. a. Individuals benefit indirectly as the company prospers. 2. Goals of corporate crime: a. Rig the "free enterprise" system b. Make the company appear more profitable.
9.
10. B. White Collar Crime 1. Definition: Crimes committed by employees of a company for personal gain, in the course of their work, and without the knowledge of their employers. a. Can be either against the company or against customers or clients of a company
11. 2. Occurs in all aspects of the business world: a. Big business where it may be easier to cover b. Small business where only one employee may be handling the books c. Finance industry that deals with “other people's money” d. Service industry where there is no inventory to match against records
12. V. Famous Examples: 1. Enron (2002)--securities fraud, insider trading, obstruction of justice, conspiracy. Wiped out the savings, pensions and jobs of thousands of former employees, and cheated California energy consumers out of millions of dollars. At least 3 executive are serving prison time, including Jeff Skilling, who began his 24-year sentence in Waseca. CEO Kenneth Lay died of heart failure before he served any time. 2. ADM (1993)--Price fixing. $100 million fine This American Life podcast: The Fix is In 3. Martha Stewart (2004)--insider trading. 5 mos. prison, $30,000 fine 4. Michael Milken (1989)--securities fraud. Fined $1 billion, 22 mos. in prison (Don't worry about him, he's still worth over $2 billion!)
13.
14. Questions 1. Why do we tend to focus more on street crime than corporate crime? 2. Should we spend more money on prosecuting white collar criminals and corporate crooks? Would that be a good investment of public money? 3. How would you maintain high ethical standards in an environment where you have the opportunity to take money or goods you have been entrusted with?
