It should come as no shock to anyone that lots of fingers are being pointed related to Wall Street’s meltdown, and specifically related to the banking industry. And auditors are likely to find themselves the targets of lawsuits. Auditor malpractice is often hard to prove, but in this case, I …
Cynthia Cooper, WorldCom whistleblower, is releasing her book in just few days. Extraordinary Circumstances: The Journey of a Corporate Whistleblower is her story. If it is anything like the speech I heard her give a few years ago at the Association of Certified Fraud Examiners Fraud Conference, it will be …
Multi-level marketing will go down in history as one of the great frauds of our times. It deceptively wraps its harmful scam with the real needs and desires of people today – additional income, stay home with the family, independence, entrepreneurship, high income without high investment or training, and a …
According to the November 5, 2007, Herbalife (NYSE:HLF) response to the Fraud Discovery Institute (FDI) report, the company states: “We have confidence in our direct-selling business model, our integrity and transparency as a NYSE-listed company and the fundamentals of our business.” Asks FDI’s Barry Minkow, “Have Herbalife forgotten the imputed …
Jeffrey Skilling, the former CEO of Enron is appealing his federal conviction and arguing that his 24 year sentence is unconstitutional. In May 2006, Skilling was convicted of 19 counts of fraud, conspiracy and insider trading in the Enron case. The former chairman of Enron, Kenneth Lay, was convicted of …
Today a federal judge sentenced former Enron executive Jeffrey Skilling to 24 years and 4 months in prison for his conviction on federal charges of conspiracy, fraud and insider trading. Skilling, 52, was also fined over $18 million for his crimes. He was denied bond while waiting to report to …
Andrew Fastow, former CFO of Enron, was sentenced to six years in federal prison today. Following his prison term, Fastow is required to serve two years of full-time community service. Fastow reached a plea deal in early 2004, in which he agreed to plead guilty to two counts of conspiracy …
As I’ve mentioned several times before, Conspiracy of Fools by Kurt Eichenwald has been a fascinating read. He dug so far into the details of the demise of the company and its executives. The company was in a downward spiral, and a merger with another energy company, Dynegy, was seen …
While Enron and Dynegy executives were trying to work out the details of their pending merger, William McLucas, one of Enron’s outside lawyers began questioning Jeff Skilling about the Southampton partnership and LJM. These were two of the several entities that put large amounts of money into the pockets of …
Chewco, one of the special purpose entities (SPE) that Enron used to enhance its financial statements, was under examination by the Arthur Andersen accountants. Specifically, they came across a letter that indicated that six million dollars from JEDI (another SPE) would fund a reserve account. This was the proof of …
