Corporate Fraud Essays (Examples)

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John Mackey said, "Under an alias to avoid having his comments associated with the Company and to avoid others placing too much emphasis on his remarks." He used the pseudonym ahodeb after his wife Deborah. (Wikipedia).
AHODEB

John Mackey posted various comments on Yahoo Finance stock forums until last August with the username ahodeb, after his wife Deborah. He wrote positive things about Whole Foods financial results and his gains on the stock and knocking out Wild Oats Markets Inc. The company is still trying to acquire Wild Oats Markets Inc. Following are few posts written by John Mackey;

Whole Foods Market Inc.

On November 29, 2000 he posted, "Obviously WFMI is no Wal-Mart (not yet anyway!)." Criticizing about the competitor Sunflower which is also an organic store, "Sunflower isn't too impressive. These guys won't hurt Whole Foods. Wait and see." He also predicted about the Whole Foods on June 25, 2004, stating….

American Corporate Fraud
PAGES 5 WORDS 1936

American Corporate Fraud
This new century began with great expectations. However, just as the door of the 21st century opened, September 11th shocked the world and bruised the economy. Then, followed the bankruptcy and corporate scandals of some of America's major corporations. One such Fortune 500 company that fell at the new century's threshold was Enron, one of the world's leading energy companies. Once hailed as the most promising corporation in the nited States, Enron is now in bankruptcy and under federal investigation for fraudulent accounting practices. The depths of its unethical practices and the aftermath of its collapse are still unfolding day by day.

Founded in 1985, Enron began as an energy company, shipping natural gas through pipelines. In 1989, Enron expanded into the natural gas commodities market, basically betting on future gas prices. By 1994, Enron was trading electricity contracts, eventually becoming the largest electricity trader in the nited States….

Tesco’s Fraud in the Accounting Information System
The Accounting Information Systems (AIS) plays a central part in the business computing structure of any organization. AIS deals with the classification, collection, storage, monitoring, and conversion of the company’s data into information utilized for internal control and reporting (Smith, 2016). Once an organization adopts an Accounting Information System, they can keep accurate records, and manage the assets of the organizations properly. The management utilizes AIS to guarantee that there are suitable access and separation of duty controls. With such restrictions, the administration can hold the employees responsible for their interaction with the system. This paper delves into how the components and functions of Tesco’s accounting information system contributed to the 2014 fraud scandal.

Tesco’s Fraud Scandal

Tesco is popular grocery retailer with its head office in Welwyn Garden City, Hertfordshire, U.K. (Colson, 2017). Globally, it is ranked at position nine regarding revenues and third position….

Corporate governance of finances in major corporations has been a major controversy during the recent recession. The scandal at Satyam is indicative of problems across the board, from CEOS, to executive boards, to independent auditors and even accounting firms such as Price Waterhouse. In this essay, the author will consider the unique problems presented in a globalised market where faith in the market is essential for international trade to function.
When the CEO assumes the entire responsibility in a corporate governance fiasco absolving everyone else (family members, board of directors, independent directors and other top management people), how should the regulatory authorities and the government proceed against the CEO who has confessed and other people who were absolved by him. Critically evaluate especially from the point-of-view of absolving all the others including the top management, board of directors and the family members, from any of the accumulated corporate wrongdoings.

What puzzles this….

(Roy, 2006)
In these cases, others working in those fields are the only ones who have the ability to conduct quality check to verify instances of possible fraud. Qualified doctors can analyze the work of other doctors to attest their medical malpractice. An honest lawyer who deals with related issues can understand how a fellow lawyer could have used deceitful methods to cheat a client off his money. Proficient lecturers can set good examples for students to bring out the incompetency of others. In the managerial level, well qualified professionals are the only ones who are smart enough to figure out the plots hatched by higher executives in order to use the shareholder money for personal needs. Scams in the political sector can only be challenged by opposing political parties or powerful entities like the court. The media is highly potent in this regard as they present malpractices in front….

Fraud Within Corporations
PAGES 4 WORDS 1237

cross examine the accounting fraud scandal that took place at Xerox, the main intention of this analysis is to know the causes and the effects of the scandal as well as the need of a good practice in business ethics, corporate management and the general oversight. Xerox was able to utilize a creative technique of accounting to give false presentation of its assets and liabilities, they also deceive the investors and lastly they were able to inflate their socks. The main players of the scandal were the chairman, CEO and other high ranking officials who took the advantage and enriched themselves (Gara, D. 2004). The high ranked officials made away millions of shillings at the expense of the stakeholders. This scandal highlighted the need for accountability and ethics in the governance of finance as well as corporate.
The analysis also aims to examine the strategic mistakes that led the Xerox….

Different Forms of Fraud
PAGES 3 WORDS 935

Corporate fraud as a dishonest activity for organizations that is considered as white collar crime has serious legal implications. Though it can be difficult to detect and catch, it is important to prevent it by creating effective and efficient policies for the organizations that ensure an efficient system of checks and balances exists in the organization for its physical and fiscal security. Whenever fraud happens in a company or organization, it often takes the form of hiding sources of revenue, overstating expenses or growth, or disguising payments made to individuals in the company. Often, fraudulent activities within the organization are complex in nature and have a gross impact on the financial nature of the organization. It is usually perpetrated by the company management and other employees are often unaware of these fraudulent activities (Mele, 2005).
Corporate fraud, as difficult as it is to prevent, often has a ripple effect whereby when….

PENALTIES - CIVIL & CIMINAL
There are statutes that impose penalties both civil and criminal for government contractors who commit fraud, waste or abuse. Some of those statutes are as follows:

False Claims Act;

False Statements Act;

Forfeiture Statute;

Anti-Kickback Act

Bribery and Gratuities statutes;

Mail and Wire Fraud statutes; and the Public Integrity Act and recent legislative initiatives to strengthen criminal penalties for violations of conflict of interest laws. (Peckar & Abramson, 2007)

The government has the right to audit the records of the contractor for up to three years following a contract for the government being completed. Companies with contracts exceeding $5 million are required to: (1) post a fraud hotline poster; (2) establish a written code of ethics; (3) establish an employee ethics and compliance training program; and (4) establish an internal control system. (New ule for Government Contractors, nd)

SUMMAY & CONCLUSION

The Corporate Compliance Plan that is successful and effective is one that will….


"hen Congress returned in 1934 to complete the federal disclosure tapestry, it created express private causes of action for misleading reports filed with the Securities and Exchange Commission (SEC) as part of the newly enacted continuous disclosure requirements, (3) provided private recoveries for market manipulation, (4) and authorized suits on behalf of reporting companies for short-swing profits garnered by certain insiders (Cox, Thomas, and Kiku, 2003)."

The creation of the SEC as a government body for oversight arose out a recognition by the courts that private action was not enough to protect investors and consumers from the materially misleading representations of corporate America (Cox, Thomas, and Kiku, 2003). Since its creation, however, the numerous laws and regulations that have come to frame the world of corporate governance have exceeded the limits of manageable governance. By the time the SEC has identified a problem, pursued investigation of the corporate representations of public….


Align. Make your solutions part of an overall email security solutions.

Every email security solution should align with the needs of every department in an organization. For instance, for anti-fraud solution, there can be an option that records a trail of fraudulent emails that can be used a technical department to keep track of fraud attacks. Or, there can also be an option that sends out alerts and warnings to users about possible causes of email security risks.

Inform. Increase communication and awareness on email security measures and procedures.

Let the employees know the causes and consequences of risks that email vulnerabilities provide. Also, an increased awareness on the measures and procedures which employees can take to strengthen email security can minimize threats to sensitive information. Thus, adding to a guarantee of having secured email system.

Why Corporate Customers Should Outsource Their Email?

Outsourcing emails has been one of the solutions that some organizations choose….

The stock was trading on pink sheets at $0.165 per share at the end of April 2003" (8).
As noted above, one of the key factors involved in what happened at HealthSouth was the enormous pressure to perform in the increasingly competitive for-profit healthcare industry, pressure that directly affected the decisions that were made concerning the types of accounting practices that were needed to "deliver the goods," at least on paper. Although absent from the foregoing list, Scrushy's name appears time and again in the investigation that followed. According to Jennings, "Like Enron, orldCom, and Tyco, HealthSouth placed tremendous pressure on employees to 'meet the numbers.' In April 1998, CEO Richard Scrushy told analysts that HealthSouth had matched or beat earnings estimates for 47 quarters in a row" (8). The role played by Scrushy in engineering the corporate culture that would allow these estimates to be reported with a straight….

This strategy was successful for some time but when WorldCom tried to acquire MCI (a company with two times more revenues than WorldCom), the binge of acquisitions was ended due to objections from antitrust and other stakeholders.
WorldCom's strategy was to display revenues and profits in extremely positive basket; for which the company had to make false misstatements in their accounting records. I think, it was the social and ethical responsibility of WorldCom to avoid misinterpretations in their financial statements and to show clear picture of the company to its stakeholders.

This strategy resulted in expansion of WorldCom through acquisitions and the expansion became so huge that the management of WorldCom was unable to handle the business. The debt of the company touched $41billion with $11billion of accounting frauds and misinterpretations. These all were the fruits of strategies implemented by Ebber just to display a very sound and positive picture of….

Corporate governance, a concept which has succeeded in attracting a lot of public interest due to its perceived importance for the corporations' and society' economic health in general has been accorded several definitions. Shleifer and Vishny (737) defined corporate governance as a concept that deals with the manner in which suppliers of various financial services to corporations somehow assure themselves of getting some good return on their investment. OECD (1999) on the other hand defines corporate governance as a system by which various corporations are effectively directed as well as controlled. The structure of corporate governance specifies the form of distribution of rights as well as responsibilities among various different participants in a given corporation. The participants include the board of directors, managers, stakeholders as well as the shareholders. The corporate governance structure lays down the rules as well as procedures to be used for making various decisions on the….


Sutherland was quite critical of why some crimes were defined as deviant, while society appears more tolerant of other transgressions. For example, individual theft is seen as causing great harm, while the harm caused by illegal pollution and the dissemination of hazardous waste are hardly recognized. In 2002, for example, the Carnival Company, a Florida-based cruise company which operates 40 ships, was convicted of falsifying its oil record books. The company under-reported the levels of oil in the bilge water it discharged. The higher levels of oil threatened ocean life. To avoid prosecution, Carnival agreed to pay $18 million in fines (Ferro 2003).

Though Carnival was guilty of wrongdoing, few members of the general public at the time would go so far as to define Carnival's actions as criminally deviant.

In summary, both functionalist and social labeling theories help to explain how corporate deviance are both defined and addressed in society. Functionalist….

Ethically, the actions of Enron management were reprehensible. From a deontological perspective, they broke laws. From a consequentialist perspective, their actions resulted in significant financial losses for millions of people, job losses for thousands and a loss of public faith in the financial system.
The Enron scandal is perhaps the most egregious misuse of data in recent years. Data was manipulated and/or hidden from those whose job was to analyze the data. ide-ranging and catastrophic losses resulted from this misuse. Had the data been presented factually and honestly, the analysis that flowed from it would have benefited Enron's internal and external stakeholders. The company may have suffered in the short-term but would have been able to survive in the long-term.

orks Cited:

Thomas, Cathy Booth. (2002). Called to Account. Time Magazine. Retrieved March 27, 2009 from http://www.time.com/time/business/article/0,8599,263006,00.html

Houston Chronicle: The Fall of Enron. (2001-2009). Houston Chronicle. Retrieved March 27, 2009 from http://www.chron.com/news/specials/enron/

ee, Heesun.….

The Wirecard Scandal: A Case Study in Corporate Fraud

In June 2020, the German fintech company Wirecard filed for insolvency, revealing a massive accounting fraud scandal that shook the global financial community. As the dust settled, it became clear that the company's financial statements had been grossly inflated, and that executives had engaged in a sophisticated scheme to deceive investors and regulators.

The Scheme

Wirecard's fraudulent scheme involved several interconnected elements. Firstly, the company created fake subsidiaries in Southeast Asia to inflate its revenue and profits. These subsidiaries had no real operations but were used to process fictitious transactions. Secondly, Wirecard used third-party....

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10 Pages
Term Paper

Agriculture

Corporate Fraud and Deception Whole

Words: 2965
Length: 10 Pages
Type: Term Paper

John Mackey said, "Under an alias to avoid having his comments associated with the Company and to avoid others placing too much emphasis on his remarks." He used…

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5 Pages
Term Paper

Business

American Corporate Fraud

Words: 1936
Length: 5 Pages
Type: Term Paper

American Corporate Fraud This new century began with great expectations. However, just as the door of the 21st century opened, September 11th shocked the world and bruised the economy. Then,…

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9 Pages
Essay

Business - Ethics

The Role of Sarbanes Oxley Act in Curbing Corporate Fraud

Words: 2717
Length: 9 Pages
Type: Essay

Tesco’s Fraud in the Accounting Information System The Accounting Information Systems (AIS) plays a central part in the business computing structure of any organization. AIS deals with the classification, collection,…

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3 Pages
Case Study

Accounting

Corporate Governance of Finances in Major Corporations

Words: 1088
Length: 3 Pages
Type: Case Study

Corporate governance of finances in major corporations has been a major controversy during the recent recession. The scandal at Satyam is indicative of problems across the board, from CEOS,…

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6 Pages
Essay

Business

Corporate Governance and Social Responsibility

Words: 1946
Length: 6 Pages
Type: Essay

(Roy, 2006) In these cases, others working in those fields are the only ones who have the ability to conduct quality check to verify instances of possible fraud. Qualified…

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4 Pages
Research Paper

Accounting

Fraud Within Corporations

Words: 1237
Length: 4 Pages
Type: Research Paper

cross examine the accounting fraud scandal that took place at Xerox, the main intention of this analysis is to know the causes and the effects of the scandal…

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3 Pages
Essay

Healthcare

Different Forms of Fraud

Words: 935
Length: 3 Pages
Type: Essay

Corporate fraud as a dishonest activity for organizations that is considered as white collar crime has serious legal implications. Though it can be difficult to detect and catch, it…

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image
6 Pages
Research Paper

Business

Corporate Compliance Plan for General

Words: 1654
Length: 6 Pages
Type: Research Paper

PENALTIES - CIVIL & CIMINAL There are statutes that impose penalties both civil and criminal for government contractors who commit fraud, waste or abuse. Some of those statutes are…

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10 Pages
Essay

Business

Corporate Governance and Social Responsibility

Words: 2934
Length: 10 Pages
Type: Essay

"hen Congress returned in 1934 to complete the federal disclosure tapestry, it created express private causes of action for misleading reports filed with the Securities and Exchange Commission (SEC)…

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3 Pages
Term Paper

Education - Computers

Corporate Email Security Poor Email

Words: 1121
Length: 3 Pages
Type: Term Paper

Align. Make your solutions part of an overall email security solutions. Every email security solution should align with the needs of every department in an organization. For instance, for anti-fraud…

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3 Pages
Term Paper

Accounting

Corporate Shenanigans at Healthsouth Who

Words: 1269
Length: 3 Pages
Type: Term Paper

The stock was trading on pink sheets at $0.165 per share at the end of April 2003" (8). As noted above, one of the key factors involved in what…

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2 Pages
Term Paper

Business

Corporate Social Responsibility the Aim

Words: 769
Length: 2 Pages
Type: Term Paper

This strategy was successful for some time but when WorldCom tried to acquire MCI (a company with two times more revenues than WorldCom), the binge of acquisitions was…

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3 Pages
Term Paper

Business

Corporate Governance a Concept Which Has Succeeded

Words: 847
Length: 3 Pages
Type: Term Paper

Corporate governance, a concept which has succeeded in attracting a lot of public interest due to its perceived importance for the corporations' and society' economic health in general has…

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2 Pages
Term Paper

Sociology

Corporate Deviance in Their Seminal

Words: 610
Length: 2 Pages
Type: Term Paper

Sutherland was quite critical of why some crimes were defined as deviant, while society appears more tolerant of other transgressions. For example, individual theft is seen as causing great…

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1 Pages
Thesis

Accounting

Corporate Scandals the Enron Scandal

Words: 386
Length: 1 Pages
Type: Thesis

Ethically, the actions of Enron management were reprehensible. From a deontological perspective, they broke laws. From a consequentialist perspective, their actions resulted in significant financial losses for millions…

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