...that were used, and the effects on the stakeholders. We will also try to classify the fraud based upon the data processing model, assess the types of controls that were in place at the time of the violations, suggest the type of corrective controls that should be adopted, and evaluate the punishment that must serve as deterrent to similar acts. At 35 years old, Gary foster of Englewood Cliffs, New Jersey has been working for Citigroup since 1999. When he left voluntarily in January of 2011, Foster was the vice president of the treasury finance department in charge of funding loans and other business-to-business transactions inside Citigroup. Bank records show that between May 2009 through December 2010, Foster caused approximately over nineteen million of dollars to be wired from Citigroup’s account to his personal bank account at Chase. With a degree in finance from Rutger University and a yearly salary of about one-hundred-thousand dollars, Foster is the ideal example of the white-collar criminal that Romney defines in those terms: “Fraud perpetrators look just like you and me.”...
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...decade of the scandal ENRON and associates, the history was repeated, with one of the most prestigious banks, JPMorgan Chase had announced the losses of almost $ 5.8 billion from a dysfunctional trading operation, as a result of gambling with other people’s money, on Wall Street. JPMorgan’s report to the SEC that the bank recorded a $718 million loss from the London trades on its internal accounts, but did not report the loss in its first quarter earnings statement. Malicious act done with the falsification of its reports filed with the SEC, hiding large losses by declaring profit of $ 5 billion. The damage caused by JPMorgan Chase affected many people with their savings and credit through credit cards supported by this institution. Here the five biggest scandals at JPMorgan Chase: Energy scandals, where American government investigators say JPMorgan traders in Houston came up with eight different manipulative schemes to offer electricity to California and Michigan at prices to falsely appear attractive. The London Whale where JPM loss is $ 6.2 billion. Enabling Madoff, where JPM is responsible about $ 17.3 billion in investor money that was lost. LIBOR scandal, a key interest rate used in derivatives markets. The banks allegedly rigged the rates for profit, while costing other markets that use the rates – such as mortgage companies – billions. JPMorgan is one of banks Freddie Mac is suing over the LIBOR scandal. And finally the Credit cards Scandals where JPMorgan agreed...
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...The Enron scandal • Enron, the 7th largest U.S. Company in 2001, filed for bankruptcy in December 2001. • Enron investors and retirees were left with worthless stock. • Enron was charged with securities fraud (fraudulent manipulation of publicly reported financial results, lying to SEC…) • Enron was a Houston-based natural gas pipeline company formed by merger in 1985. • By early 2001, Enron had morphed into the 7th largest U.S. Company, and the largest U.S. buyer/seller of natural gas and electricity. • Enron was heavily involved in energy brokering, electronic energy trading, global commodity and options trading, etc. • On October 16, 2001, in the first major public sign of trouble, Enron announces a huge third-quarter loss of $618 million. • On October 22, 2001, the Securities and Exchange Commission (SEC) begins an inquiry into Enron’s accounting practices. • On December 2, 2001, Enron files for bankruptcy. The Background Enron was founded as a pipeline company in Houston in 1985. Enron was a company that was able to profit by providing the delivery of gas to utility companies and businesses at the fair value market price. As the deregulation of electrical power markets arose, Enron with the help of former chairman Kenneth Lay decided to diversify their business portfolio and enter into becoming an energy broker who traded electricity and other commodities. Enron took what would prove be a fatal turn that would ultimately meet their demise...
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...ENRON- A Study of FAILURES Who, How, Why! Arthur Gudikunst, Ph.D. Revised: April, 2003 Professor of Finance Finance Department Bryant College Introduction: The saga of the ENRON Corporation has been unfolding in the media for well over a year. In the span of only three years, ENRON has gone from public and professional acclaim of the company and its senior executives to scorn, infamy and bankruptcy. Its public auditing firm, Arthur Andersen, has basically been destroyed, as well as publicly disgraced. Tens of thousands of employees and investors have been emotionally and financially affected. Major financial services firms in banking, securities brokerage and insurance have been, and may yet be, drawn into the legal battles regarding who is to blame for the ENRON failure. Overview of ENRON: The following timeline for ENRON is presented to set the major milestones for the company: July 1985- Houston Natural Gas merges with InterNorth to form ENRON, as an interstate natural gas pipeline company. Kenneth Lay is CEO. 1989- ENRON starts trading natural gas commodities and commodity derivative financial contracts. 1994- ENRON begins trading electricity as a commodity and related financial derivative contracts. Jeffrey Skilling is executive in charge of this new business venture. Nov. 1999- EnronOnline is launched as a web site for the global trading of energy commodities and derivative contracts. Jeffrey Skilling leads this continued transformation...
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...ives terry k. Patton solutions manual and test bank Introduction to information systems 2e canadian ed rainer cegielski splettstoesser hogeterp sanchez rodriguez instructor manual Introduction to logic, 14e irving m. Copi solutions manual and test bank Introduction to managerial accounting 6e brewer garrison solutions manual and test bank introduction to organic and biochemistry, 8th edition solutions manual and test bank by frederick a. Bettelheim | william h. Brown introduction to personality toward an integrative science of the person 8e walter yuichi ayduk test bank introduction to research in education, 9th edition solutions manual and test bank by donald ary | lucy cheser jacobs | christine k. Sorensen | david a. Walker introduction to sociology, 11th edition solutions manual and test bank by henry l. Tischler Jones - essentials of contemporary management - 5e, solutions manual and test bank 0078029341 juvenile delinquency: the core, 5th edition solutions manual and test bank by larry j. Siegel | brandon c. Welsh irm and tb Kleppner's advertising procedure, 18/e ron lane karen king tom reichert solutions manual and test bank labor relations: striking a balance 4th edition by john budd solutions manual and test bank Machine elements in mechanical design, 4/e robert l. Mott solutions manual Macroeconomics 10e - slavin – solutions manual and test bank for 9780073511429, mcgraw-hill Macroeconomics, 8/e solutions manual and test bank by andrew b. Abel, Management a practical introduction...
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... * Substantial experience in loan processing, mortgage banking and loan support. * Knowledgeable of Fidelity System, Gateway System, Talon System, PLS, LSAMS, and FORTRACS. * Deep knowledge of real estate transactions, processes and principles. * Operational knowledge of all documentation required for loan processing. * Familiarity about lending regulations followed at state and federal level namely Reg Z and Respa. * Solid understanding of FNMA/FHLMC and industry standard guidelines. * Skilled at operating office equipment, Microsoft and computer applications. * Ability to identify and manage exceptions and omissions appropriately. * Ability to interact effectively in verbal and written medium with Bank officials, customers and outside agencies. * Strong clerical skills, organization and planning skills. Experience ADT – Billing Integrity Specialist October 2014 – Present * Review and check contracts and supporting documents. * Code and process contracts into required electronic format. * Audit on-line contracts for accuracy and completeness. * Load information onto prescribed databases. * Verified, updated and corrected source documents. Solutionstar Mortgage - Texas Taxes/Title Ops April 2013 - July 2014 * Researched property taxes on homes for delinquency and current amount. * Assigned order orders to different abstractors in Texas, for FHA, foreclosure, Bringdown, Deed in Lieu, Short Sale, and...
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...this case and other information you know, do you believe Andersen violated the law? 3. Do you believe that the Supreme Court's opinion overturning the lower court's decision was appropriate? 4. Should the SEC and the Department of Justice have tried Andersen as a firm or should they have targeted specific individuals who had engaged in acts the two bodies believed to be unlawful? 5. Although Andersen's conviction was overturned, do you believe that its employees acted in an ethical manner? 6. Comment on the actions of David Duncan and Nancy Temple. Which of these parties do you believe was more responsible for the Andersen saga? 7. The class action lawsuit against Andersen also named the Canadian Imperial Bank of Commerce, JPMorgan Chase, Citigroup, Merrill Lynch, and Credit Suisse Group as codefendants with Andersen. Why would the plaintiffs name so many entities in their lawsuit? Merrill Lynch and Credit Suisse asked a U.S. appeals court to rule that the complaint should not have been certified as a class action suit. Why would these entities make such a claim? Case # 2 PTL Club–The Harbinger of Things to Come? P. C5 DISCUSSION QUESTIONS 1. What similar factors led to the demise of both Laventhol & Horwath and Andersen? 2. The AICPA stated that the profession must learn from past cases to prevent reoccurrences of similar detrimental activities. Do you believe that Andersen's partners would have adopted a different management philosophy...
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...artificial gas shortages” (Cantori, 2011). Enron was able to sell their gas at a higher price. Traders were even making up deals to help Enron appear to be selling more than what it was actually selling. “All the revenues reported were products of accounting manipulations orchestrated by Enron’s Chief Finance Officer Andrew Fastow” (Cantori, 2011). The only real money coming in was from investor not from revenues. Enron did not act alone during the scandal. The company had the help of several investment banks. “Enron would not have been able to engage in the extent of the accounting deceptions it did, involving billions of dollars, were it not for the active participation of major financial institutions willing to go along with and even expand upon Enron’s activities” (Sun, 2008). Enron was able to solve its cash problems by borrowing a substantial amount of cash from these banks. Enron borrowed a total of $8.5 million from Citigroup and JP Morgan Chase over nine years. “The banks used complex financial transactions to boost Enron’s anemic cash flow to match its profit growth on paper” (Sun, 2008). Since most of Enron’s cash was from borrowed funds and investors, Enron had to find a way to cover up its losses without anyone knowing. Andrew Fastow, Enron’s Chief Finance Officer, and others “orchestrated a scheme to use off-balance-sheet special purpose vehicles (SPVs), also known as special purpose entities (SPEs) to hide its mountains of debt and toxic assets from investors and...
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...Case Study Enron law firm called accounting practices 'creative' By Greg Farrell www.usatodaycollege.com Accounting fraud Part I: The problems “Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices always illegal or can they ever be justified? This case study will present examples of companies who have used inappropriate accounting practices, the results of their deceptions and the government's plan to avoid future incidents. Did banks play role in Enron scandal? By Edward Iwata Banks face accusations in Enron case By Edward Iwata Banks defend e-mail about Enron By Edward Iwata WorldCom finds accounting fraud By Andrew Backover, Thor Vladmanis, Matt Kranz and Michelle Kessler Former controller comes up more often By Andrew Backover and Chris Woodyard Cover story WorldCom’s bad math may date back to 1999 By Jayne O’Donnell and Andrew Backover CFOs join their bosses on the hot seat By Jim Hopkins Capitalizing on oldest trick in book How WorldCom, and others, fudged results By Matt Krantz USA TODAY WorldCom's accounting game is stunning investors who thought the loophole the telecom firm used was sewn shut years ago. Bros. "How was this overlooked by people who are supposed to be looking at it...
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...to be your helper. Delivery is in the next moment. Solution Manual is accurate. Buy now below and the DOWNLOAD LINK WILL APPEAR IMMEDIATELY once payment is done! Prepare to receive your Accounting Principles Solution Manual in the next moment. -------------------------------------- Accounting Principles Solution Manual Here’s a sample list of all other solutions manuals we have, if you need any one of them please contact us at solutionsmanualzone@gmail.com -A Transition to Advanced Mathematics by Douglas Smith, Maurice Eggen 5 Solution Manual -Accounting by Carl S. Warren, James M. Reeve 24 Instructor's Manual -Accounting by Carl S. Warren, James M. Reeve 24 Test-Bank -Accounting and Auditing Research Tools and Strategies by Weirich, Pearson, Churyk 7 Solution Manual -Accounting and Auditing Research Tools and Strategies by Weirich, Pearson, Churyk 7 Cases Solutions -Accounting for Governmental...
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...University Online Sharon Williams August 13, 2012 Washington Mutual Bank Add on from Phase 4 What went wrong that caused the system of internal control to fail at Washington Mutual Bank? High risk mortgage lending, shoddy lending practices, maneuvering borrowers into high risk loans, corrupt the financial system, selling delinquency prone and fraudulent loans, and giving compensations that help bring down financial disaster on them. Starting in 2004 they started using a strategy in lending to make more money by taking high risk loans. In 2006 they started experienced high rates of failure and defaulting loans. By 2007 the bank was losing money that had to do with poor quality and fraudulent loans and securities. The bank internal control systems fail because no one took the evidence that was provided by employees in email, audit reports, and reviews seriously. The bank CEO and president was told of the extensive fraud by Long Beach Mortgage Company. After looking over the review the bank tried to stop the fraud, but it was ineffective. The senior management also helped in sells the delinquency loans to investors. Regulatory failure of the Office of Thrift Supervision (OTS) did not try to stop what they knew was unsafe and unsound practices at WaMu that help with their down fall. This bank had over 500 grave defects. The records of OTS has shown that during the last five years the bank had many problems dealing with lending, risk management, asset quality...
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...not acceptable that the student plagiarizes through internet sources, written documents and reports of others, and etc. Any outside source should be correctly cited with a reference. Each case will be electronically submitted to Safe Assignments on blackboard (Go to assignments tab, click on create assessment, pick safe assignment from the drop down menu and upload your case there). Due date is Thursday Nov 29, 2011. Please bring a hard-copy to the class as well. Late papers will not be accepted under any circumstances. 1. List 5 key stakeholders affected by the collapse of Enron? Explain briefly how each stakeholder was affected. a. Employees and Retirees. Many lost their jobs and their investments. b. Citi Bank and J.P Morgan Chase. Banks faced Major write downs on bad loans. c. Regulatory Authorities. Commodities Futures...
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...Case Studies of Cybercrime and Its Impact on Marketing Activity and Shareholder Value Katherine T. Smith Department of Marketing Texas A&M University 4112 TAMU College Station, TX 77843-4112 Tel: 979-845-1062 Fax: 979-862-2811 Email: Ksmith@mays.tamu.edu L. Murphy Smith, CPA* Mays Business School Texas A&M University 4353 TAMU College Station, TX 77843-4353 Phone: 979-845-3108 Fax: 979-845-0028 Email: Lmsmith@tamu.edu Jacob L. Smith Grace Bible Church College Station, TX 77845 JacobSmith@grace-bible.org *Corresponding author Forthcoming in Academy of Marketing Studies Journal Electronic copy available at: http://ssrn.com/abstract=1724815 CASE STUDIES OF CYBERCRIME AND ITS IMPACT ON MARKETING ACTIVITY AND SHAREHOLDER VALUE Katherine T. Smith, Texas A&M University L. Murphy Smith, Texas A&M University Jacob L. Smith, Grace Bible Church ABSTRACT Cybercrime, also called e-crime, costs publicly traded companies billions of dollars annually in stolen assets and lost business. Cybercrime can totally disrupt a company’s marketing activities. Further, when a company falls prey to cyber criminals, this may cause customers to worry about the security of their business transactions with the company. As a result, a company can lose future business if it is perceived to be vulnerable to cybercrime. Such vulnerability can lead to a decrease in the market value of the company, due to legitimate concerns of financial analysts, investors, and creditors. This study examines...
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...MAKING ENTERPRISE RISK MANAGEMENT PAY OFF Thomas L. Barton William G. Shenkir Paul L. Walker Prentice Hall PTR One Lake Street Upper Saddle River, NJ 07458 www.phptr.com Editorial/Production Supervision: KATHLEEN M. CAREN Executive Editor: JIM BOYD Marketing Manager: BRYAN GAMBREL Manufacturing Manager: MAURA ZALDIVAR Cover Design: TALAR BOORUJY ©2002 Financial Executives Research Foundation, Inc. Published by Financial Times/Prentice Hall PTR Pearson Education, Inc. Upper Saddle River, NJ 07458 Prentice Hall books are widely used by corporations and government agencies for training, marketing, and resale. The publisher offers discounts on this book when ordered in bulk quantities. For more information, contact: Corporate Sales Department, Phone: 800-382-3419; Fax: 201-236-7141; E-mail: corpsales@prenhall.com; or write: Prentice Hall PTR, Corp. Sales Dept., One Lake Street, Upper Saddle River, NJ 07458. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-13-008754-8 Pearson Education LTD. Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education North Asia Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Pearson Education, Upper Saddle River, New Jersey A D V I S O R Y C O...
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...Chapter 01 Investments: Background and Issues Multiple Choice Questions 1. Financial assets represent _____ of total assets of U.S. households. A. over 60% B. over 90% C. under 10% D. about 30% 2. Real assets in the economy include all but which one of the following? A. Land B. Buildings C. Consumer durables D. Common stock 3. Net worth represents _____ of the liabilities and net worth of commercial banks. A. about 50% B. about 90% C. about 10% D. about 30% 4. According to the Flow of Funds Accounts of the United States, the largest single asset of U.S. households is ___. A. mutual fund shares B. real estate C. pension reserves D. corporate equity 5. According to the Flow of Funds Accounts of the United States, the largest liability of U.S. households is ________. A. mortgages B. consumer credit C. bank loans D. gambling debts 6. ____ is not a derivative security. A. A share of common stock B. A call option C. A futures contract D. All of the above are derivative securities. 7. According to the Flow of Funds Accounts of the United States, the largest financial asset of U.S. households is ____. A. mutual fund shares B. corporate equity C. pension reserves D. personal trusts 8. Active trading in markets and competition among securities analysts helps ensure that __________. I. security prices approach informational efficiency II. riskier securities are priced to offer higher...
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