corporate scandals
TRANSCRIPT
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Biggest CorporateScandals
Adam MihailInternational Affairs
3rd year student, FSEGA
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WorldCom•US’s second largest long-distance phone
company•Filed for Chapter 11 in 2002•The company’s assets were inflated by around
$11 billion with $3.8 billion in fake accounts
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Jerome Kerviel and the Société Générale Banking Scandal
•French rogue trader, convicted in 2008•Made unauthorized trading in the securities
markets using the bank’s computers resulted in €4.9 billion losses to the Société Générale funds.
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HIH Insurance•HIH Insurance was Australia’s second-largest
insurance company until it entered into provisional liquidation in 2001•It incurred losses totaling $5.3 billion•its director, Rodney Adler, was sentenced to four
and half years of jail time
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Parmalat•Its founder, Calisto Tanzi was accused of
questionable accounting practices in 2003 when a €14 billion hole was discovered in the company’s accounting records•In 2005, Enrico Bondi relists a reconstructed
Parmalat on the Milan exchange
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Swissair•Grounded in 2001 due to a bad expansion move•later acquired by Crossair and liquidation firm
Jurg Hoss.
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The Bernie Madoff Ponzi Scheme
• stockbroker, investment advisor, and financier, convicted in 2009 to 150 years in federal prison•Using a Ponzi scheme, he embezzled over $65
billions from people and companies all over the world
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Bre-X•Canadian mining company, announced the in
1995 the discovery of a large quantity of a gold in a mine in Indonesia•In 1997, they filed for bankruptcy
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Tyco Ltd.•Manufacturing conglomerate that deals with
electronic components, health care, fire safety and security•In 2005, its CEO Dennis Kozlowski and CFO
Mark H. Swartz were found guilty of stealing $600 million from the company.
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Barings Bank•is the oldest merchant bank in the city
of London, handled the Queen’s personal bank and was once the financier of the Napoleonic Wars.•Collapsed in 1995
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Enron•by the use of accounting loopholes, special
purpose entities, and poor financial reporting, were able to hide billions of dollars in debt from failed deals and projects.•Filed for bankruptcy in 2001
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Bibliography:•http://
www.worldfinance.com/home/special-reports-home/the-parmalat-scandal (12-05-2014)•http://www.insidermonkey.com/blog/the-10-biggest-corporate-scandals-in-modern-history-174301/?
singlepage=1 (12-05-2014)•http://list25.com/25-biggest-corporate-scandals-ever/?
view=all (12-05-2014)•http://
www.foster.washington.edu/centers/facultyresearch/Pages/karpoff-scandals.aspx (12-05-2014)
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