A Legislative Audit Bureau report on the UW System’s employment practices shows that the system employed 40 felons currently under supervision this past fall. (An Associated Press report states 40 felons work for the UW System, but the truth is that the 40 are only the ones currently under supervision. There could be other felons working for the system, but not under supervision.)
Wesley Colwell, the former head of accounting of Enron’s wholesale energy unit testified that in July 2000, he shifted $14 million from reserve accounts to pump up earnings. He also testified that neither Kenneth Lay nor Jeffrey Skilling directly told him to manipulate earnings.
Colwell testified that Enron’s wholesale unit delayed financial reports for the fourth quarter of 2000 until they were instructed on how much profit the company wanted to report.
Anna Nicole Smith (real name Vickie Lynn Marshall) was a 26 year-old stripper when she met 89 year-old millionaire Howard Marshall. They met at Anna’s workplace, and adult club, and married in 1994.
Howard died in August 1995, 14 months after the wedding. All of his assets were held in a trust, with his son Pierce Marshall as the primary beneficiary. Anna Nicole claims that Howard created a separate trust for her benefit, but that Pierce destroyed the documentation.
Distributed Denial of Service (DDOS) attacks have been wreaking havoc with e-commerce sites. These attacks bombard sites with so much internet traffic, that their regular customers cannot get through to do business with them. Hackers get into computers and turn them into “bots”, which are then used to attack e-commerce sites. Symantic reported an average … Read more Denial of Service attacks are affecting e-commerce
The tax preparation company of H&R Block Inc. has incorrectly calculated its own state taxes. A mistake in calculating its state effective income tax rate means that the company owes $32 million in back taxes that go back to 2004. A company representative said that the error isn’t material. But it sure hurts when the … Read more H&R Block incorrectly calculates its own taxes!!!
Four KPMG (and former KPMG) partners have agreed to SEC fines for their failure to detect a multi-billion dollar accounting fraud at Xerox Corp. Two of the four will pay the SEC $150,000 each, the largest fines ever imposed against individual auditors by the SEC. From 1997 through 2000, Xerox manipulated its accounting for office … Read more KMPG partners agree to SEC penalties
Every year, taxpayers lose refunds they’re entitled to because they haven’t filed tax returns. Currently, the IRS owes over $2 billion to 1.7 million people for the tax year of 2002. But they can’t get the refunds unless they file the returns, and the deadline to file is April 17, 2006. Taxpayers have up to … Read more IRS Owes Taxpayers $2 Billion
At least three lawsuits have been filed against McDonald’s Corp. over ingredients in its french fries. McDonald’s website previous indicated that the french fries were free of gluten and milk or wheat allergens. The site now states “contains wheat and milk ingredients” after the company disclosed that the fries include natural flavoring which includes extracts … Read more Lawsuit over McDonald’s french fries
Merrill Lynch & Co. Inc. will pay $164 million to settle 23 class action suits related to it cover of internet companies. It was alleged that during the dot com boom, Merrill Lynch analysts had conflicts of interests and gave favorable coverage to certain securities in order for the company to land other business. Two … Read more Merrill Lynch settles 23 class action lawsuits
The Securities and Exchange Commission has alleged that two KPMG auditors, Kevin Hill and Rosemary Meyer, ignored fraud red flags during their audit of U.S. Foodservice Inc., a subsidiary of Ahold NV. It is further alleged that the auditors violated the rules of professional conduct during their audit.
It is alleged that Hill and Meyer found evidence of improperly recorded revenue, but the auditors did not act on this information. It is further alleged that white-out was used to cover markings on working papers that referred to audit exceptions identified related to vendor payments.